If competition can be relied upon to serve as the regulator of a market, but if the game needs to be kept fair, the proper governmental policy should be
a. nationalization
b. economic regulation
c. the application of antitrust
d. socialization
e. government ownership
C
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Explain what should happen to the demand curve of monopolistically competitive firms as consumers increasingly perceive their products to be more like commodities. What industrial structure does this lead to?
What will be an ideal response?
As income rises ________
A) the number of transactions households and firms undertake should increase B) wealth also rises C) demand for real money balances should increase D) all of the above E) none of the above
Inflation
What will be an ideal response?
The balance of payments constraint refers to the limits on:
A. exchange rate policy imposed by flexible exchange rates. B. currency convertibility observed in most developing countries. C. domestic macroeconomic policy, arising from a shortage of international reserves. D. macroeconomic policy resulting from IMF conditionality.