The loss of utility associated with an inferior mix of output because of poorly designed regulations is known as regulation costs.
Answer the following statement true (T) or false (F)
False
If bad decisions, incomplete information, or faulty implementation actually worsen the mix of output, the loss of utility imposes costs on society over and above administrative and compliance costs. This is an efficiency cost.
You might also like to view...
The supply of Russian caviar from the Caspian Sea diminished after the collapse of Soviet communism. The price of caviar rose from $395 a pound to $595 a pound. Still, revenue from the sale of caviar rose 30 percent. You can conclude that:
A. the supply curve for caviar has shifted to the left along an elastic demand curve. B. an elastic supply curve for caviar has shifted to the left. C. an inelastic supply curve for caviar has shifted to the left. D. the supply curve for caviar has shifted to the left along an inelastic demand curve.
Suppose the South had won the Civil War, and trade no longer took place between Northern and Southern states. Explain whether the sum of the North and South GDPs would have been higher or lower than with the current United States.
What will be an ideal response?
The decision by firms of the quantity of output to supply is based on
A. government oversight. B. the price of inputs. C. the price of output. D. techniques of production available.
Economist Edward Prescott is associated with the
A) early spread of the old Keynesian approach. B) creation of the "fooling" model. C) creation of the first "New Classical" approach. D) creation of the "real business cycle" model.