Which of the following is true of regulation?
A) Mortgage lending and banking have historically been unregulated and therefore regulation in these sectors is unpopular.
B) Regulatory agencies often ignore the secondary effects of their actions and fail to foresee future problems.
C) Policy-makers are hesitant to call for new regulations even when it is clear they would help avert future crises.
D) Past regulations have been effective at averting crises, but they are unpopular because they reduce the profitability of the regulated industry.
B) Regulatory agencies often ignore the secondary effects of their actions and fail to foresee future problems.
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In a competitive industry
a. firms sell more if price is above marginal cost b. firms sell more is price is below marginal cost c. firms sell less if price is above marginal cost d. none of the above
A financial journal in the country of Valtonia predicts that Valtonia's currency, the talon, will certainly strengthen soon. The highly acclaimed Haven High Journal also publishes an article stating that talon will appreciate. Craig, the CEO of Stark Industries, plans to invest in Valtonia in the near future. The best strategy for Stark Industries is to: a. buy talons when it weakens in the
future. b. sell all the talons that it holds right now. c. buy talons right now. d. pull its investment from Valtonia right now.
Which of the following is not a characteristic of a public good?
a. It is not excludable. b. It is not diminished or depreciated as additional people consume the good. c. Its benefits cannot be withheld from anyone. d. Because it is a free good, there is no opportunity cost.
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.