An economist would be most likely to advocate for regulation under which of the following scenarios?
A. It was politically popular.
B. Scientific evidence suggested regulation was an appropriate solution.
C. There was a strong philosophical argument in favor of regulation.
D. Never. Economists find all regulation to be inefficient.
Answer: B
You might also like to view...
The NBER's Business Cycle Dating Committee defines a recession as at least two consecutive quarters of falling real GDP
Indicate whether the statement is true or false
Which of the following is FALSE?
A) Capital flows today are larger mainly because economies are larger. B) The last two decades are the first time in history that a nation has borrowed more than 10 percent of its GDP. C) There are important qualitative differences between capital flows today and in the past. D) Today most international financial transactions involve buying and selling assets denominated in foreign currencies.
Which of the following statements about the perfect competitor is INCORRECT?
A. The products made by a perfectly competitive firm have no close substitutes. B. If an individual firm raises price, it will lose business. C. The perfect competitor sells a homogeneous commodity. D. The perfectly competitive firm is always a price taker.
Aside from a statistical discrepancy, any deficit in the current account is matched by
A. a surplus in the merchandise trade balance. B. the excess of exports over imports. C. a deficit in the capital account. D. a surplus in the capital account.