Which of the following statements provides the best description of one reason why regulation of an industry might not increase economic efficiency?
a. There are more employees of regulated industries than affected customers.
b. Insufficient regulator pay makes it difficult to hire effective regulators.
c. The regulated industry has stronger incentives to be involved in the regulation process than the general publi
c.
d. Regulated industries have too much economic power and can litigate away most regulation.
c
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Suppose the supply curve for digital cameras shifts to the right. This will cause a relatively large decrease in the price of digital cameras if both demand and supply are inelastic
Indicate whether the statement is true or false
Eggs are considered a poor medium of exchange principally because of their
a. durability b. portability c. volatility d. fragility e. abundance
Figure 10-6
In Figure 10-6, which graph best illustrates an adverse supply shock accompanied by an increase in government spending?
a.
(1)
b.
(2)
c.
(3)
d.
(4)
An open market purchase by the Fed:
A. increases the total amount of reserves in the banking system. B. decreases the total amount of reserves in the banking system. C. does not change the total amount of reserves in the banking system. D. causes the reserve requirement to fall.