In the 1960s and 1970s the U.S. passed several major consumer safety laws, including the Flammable Fabrics Act and the Child Protection Act. The economic impact of such legislation may include all of the following except:
a. reducing the price of the regulated product.
b. increasing the cost of producing the regulated product.
c. reducing the supply of the regulated product.
d. reducing competition within the regulated industry.
a. reducing the price of the regulated product.
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In the election of 1896, supporters of William McKinley included all of the following except:
a. advocates for the gold standard. b. voters opposed to high tariffs. c. industrial employers in the East. d. Republicans.
For a good that is a necessity, demand
a. tends to be inelastic. b. tends to be elastic. c. has unit elasticity. d. cannot be represented by a demand curve in the usual way.
Suppose that a firm's long-run average total costs of producing televisions decreases as it produces between 10,000 and 20,000 televisions. For this range of output, the firm is experiencing
a. economies of scale. b. constant returns to scale. c. diseconomies of scale. d. coordination problems.
If the account manager finds that the current level of bank reserves is greater than the desired level indicated in the most recent directive from the FOMC, he will
A) order banks to reduce their reserves. B) order banks to raise their interest rates in an attempt to get them to loan out more of their reserves. C) conduct an open market purchase. D) conduct an open market sale.