Although U.S. Steel controlled nearly 75 percent of the domestic iron and steel industry, in 1920 the Supreme Court ruled that the firm was not in violation of the Sherman Antitrust Act because there was no evidence of abusive behavior. What antitrust doctrine was the court applying in this case?
a. The rule of reason.
b. The per se rule.
c. The marginal cost pricing rule.
d. The natural monopoly rule.
a
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One reason government deficits do not cause complete crowding out is because:
a. There is an incentive for individuals in the household sector to adjust their investment portfolios to take advantage of the change in relative returns. This provides more funds to the real loanable funds market. b. Consumption always picks up the slack, which is to say that consumption is the residual spending source when all else fails. c. The amount of borrowing falls as the real risk-free interest rate rises. d. All the above. e. None of the above.
Considering how a change in one variable affects the value of another variable is called:
A. the Peter Principle. B. the marginal principle. C. the principle of supply and demand. D. functional decision making.
Which of the following models results in the highest level of output assuming a fixed number of firms with identical costs and a given demand curve?
A) Cournot B) Stackelberg C) Monopoly D) Cartel
Basic differences between Medicare and Medicaid include the following, except:
A. Medicare is financed by a payroll tax, while Medicaid is financed by general tax revenues B. Medicare is a Federal program while Medicaid is a state-government program C. Medicare is mostly based on age, while Medicaid is mostly based on income D. Medicare is a social insurance program, while Medicaid is a public assistance program