Regulatory capture exists when
A. regulated firms form special interests and influence politicians who appoint regulators through campaign donations.
B. regulated firms pay for favorable public media campaigns.
C. the federal government successfully deregulates an industry.
D. two or more firms merge to gain a majority market share.
Answer: A
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The riskiness of an asset that is unique to the particular asset is
A) systematic risk. B) portfolio risk. C) investment risk. D) nonsystematic risk.
Suppose labor and capital are the only two resources used for production. In the short run:
a. only capital can move freely between sectors. b. only labor can move freely between sectors. c. both capital and labor can move freely between sectors. d. both resources are restricted in their movement
Which of the following is NOT an example of product differentiation?
A. A publisher that prints out-of-print books for a customer. B. A local pub where the bartenders put on a juggling act with the bottles before they mix your drink. C. Corn from an Iowa cornfield vs. corn from an Illinois cornfield. D. The Fudge Factory where the workers sing and tell jokes while they make fudge.
A theory of fairness that holds that taxpayers should contribute to the government in ________ the benefits they receive from public expenditures is the benefits-received principle.
A. a greater proportion than B. proportion to C. a smaller proportion than D. The benefits-received principle does not equate taxpayer contributions to the government and benefits received from public expenditure.