Which of the following is a major shortcoming of government regulation of business monopoly?
a. The regulators often estimate production costs incorrectly and thus force firms into loss positions.
b. The regulators often come to represent the interests of the established firms and use their power to limit competition.
c. The regulators usually permit firms to make unusually high accounting profits.
d. The regulators, acting in consumers' interests, often force prices so low that even with efficient production techniques the regulated firms lose money.
B
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We know that the minimum wage causes unemployment. So, why does the government impose a minimum wage?
What will be an ideal response?
According to the U.S. Treasury,
A) creditors do not have to accept cash in payment of debts. B) U.S. dollars must be accepted as payment for any good or service sold in the United States. C) firms do not have to accept cash as payment for goods and services. D) the government will not accept cash in payment of taxes.
Assume the economy is headed into a recession. Considering this, and recognizing that firms are slow to change the prices they charge for their products, are firms more or less likely to be able to pursue an effective markup pricing strategy in their
pursuit of positive economic profit? Why?
Answer the following statement(s) true (T) or false (F)
1. Standard setting under the Safe Drinking Water Act Amendments of 1996 ignores benefit-cost analysis. 2. The EPA under the Obama administration devised a Drinking Water Strategy with goals that include addressing contaminants as groups instead of one at a time. 3. Under the law, priority contaminants are those that are expected to have an adverse effect on the ecology. 4. Under U.S. law, National Primary Drinking Water Regulations (NPDWRs) have been announced for hundreds of chemicals, microorganisms, and radionuclides. 5. Each National Primary Drinking Water Regulation (NPDWR) includes a Maximum Contaminant Level Goal (MCLG), a Maximum Contaminant Level (MCL), and Best Available Technology (BAT).