What are the major rationales for consumer protection in nonmonopolistic industries?
What will be an ideal response?
The main rationales for consumer protection in nonmonopolistic industries are: (1 ) the presence of market failures, which induce governments to correct the externalities; and (2 ) the presence of asymmetric information for certain products so that the government can ensure consumers are protected.
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Figure 8-1
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Based on the scatter diagram in Figure 8-1, approximately how much will consumption increase after a permanent tax cut of $400 billion?
A. $100 billion B. $150 billion C. $250 billion D. $350 billion
An increased willingness to lend money to a company can be shown by the
A. Demand for loanable funds shifting to the right. B. Supply of loanable funds shifting to the left. C. Supply of loanable funds shifting to the right. D. Demand for loanable funds shifting to the left.
When the MPP of labor is zero, ceteris paribus,
A. Additional units of labor must be employed because other factors of production are being wasted. B. No further increases in output can be achieved by using additional units of labor. C. Employment can be increased only by offering a higher wage rate. D. MRP is at a maximum.
Maria wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of gasoline at $2.50 per gallon, the car wash costs $2, but if she buys 10 gallons of gasoline, the car wash is free. For Maria, the marginal cost of the tenth gallon of gasoline is
A) $2.50. B) zero. C) $2.00. D) 50 cents.