Malfeasance at Enron, a Houston-based energy firm, led to overstatement of revenues by almost $92 billion. As Enron closed its operations, U.S. energy prices remained stable. This may have been evidence that
A) Enron could charge whatever price it wanted to for energy.
B) there was lack of any competition, so Enron was the winner.
C) there is a competitive market in energy distribution in the United States.
D) the accounting profession needs to review its policies quickly.
Answer: C
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Which of the following describe the benefits and costs of the Clean Air Act from 1970 to 1990?
a. benefits: $22 trillion; costs: 44 times greater than benefits b. benefits: $500 trillion; costs: $22 trillion c. benefits: $22 trillion; costs: $500 billion d. benefits: 44 times less than costs; costs: $500 billion
An example of infant industry protection is the computer industry in Brazil from 1977 to 1988. It is widely concluded that the effort was:
a. a failure. b. a complete success, because now Brazil manufactures nearly all computer CPUs. c. successful, although there were costs to pay in higher prices, making PCs unattainable for most Brazilian consumers. d. as measured on a cost-benefit basis, still unclear due to potential future gains.
Using a production possibilities curve, a technological advance that increases the amount of output that can be produced of either good represented on the graph when the amount of inputs remains the same would be illustrated as a(n):
A. flattening of the curve. B. movement from one point to another point along the curve. C. outward shift of the curve. D. movement from a point on the curve to a point inside the curve.
Under what conditions will competition among politicians for votes result in an efficient provision of a public good?
What will be an ideal response?