How does social regulation differ from economic regulation?
What will be an ideal response?
Social regulation focuses on the impact of production on the environment, working conditions, and the safety of goods. Economic regulation is concerned with the prices and outputs of specific goods or services. Social regulation covers firms in all industries while economic regulation usually involves particular industries. Social regulation can have a much broader impact on the economy as a whole than economic regulation.
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Refer to Figure 10-6. Which diagram demonstrates a decrease in total utility following an increase in the price of candy?
A) the movement from e to d in Panel A B) the movement from g to f in Panel B C) the movement from k to h in Panel C D) none of the above
For a firm that is competitive in both product and factor markets, the value of the marginal product of labor: a. is constant and equal to the market wage
b. increases, causing the labor supply curve to slope upward. c. declines because the marginal product of labor diminishes as the number of workers rises. d. declines because a competitive firm must lower product price in order to increase sales.
When one firm uses the same strategy as the other firm used in the previous time period, this is known as a:
A. tit-for-tat strategy. B. grim-trigger strategy. C. dominant strategy. D. predatory strategy.
Suppose the price level is fixed, the MPC is .5, and the GDP gap is a negative $80 billion. To achieve full-employment output (exactly), government should:
A. increase government expenditures by $80 billion. B. reduce government expenditures by $40 billion. C. reduce taxes by $40 billion. D. reduce taxes by $80 billion.