"Competition is the great regulator." This statement reflects that
A) when competition is present, businesses have a strong incentive to serve the general public and therefore there is little need for regulation of competitive markets.
B) government regulation is the key ingredient of competitive markets and therefore markets cannot be competitive without regulation.
C) when markets are regulated by the government, there is no need for competition among business firms.
D) extensive regulation is needed to assure that businesses will treat consumers properly and serve the interests of the general public.
A) when competition is present, businesses have a strong incentive to serve the general public and therefore there is little need for regulation of competitive markets.
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If real GDP and aggregate expenditure are less than equilibrium expenditure, what happens to firms' inventories? How do firms change their production? And what happens to real GDP?
What will be an ideal response?
An increase in the expected inflation rate causes: a. the velocity of money to increase. b. the velocity of money to decrease. c. the actual inflation rate to fall
d. the actual price level to decrease. e. the money supply to increase.
The members of the Federal Reserve Board:
A. are elected by votes of the 12 presidents of the Federal Reserve Banks. B. serve 14-year terms. C. are appointed by the American Economic Association. D. serve seven-year terms.
About how many people were employed in the U.S. health care industry in 2010?
A. 7 million B. 17 million C. 34 million D. 42 million