Regarding the costs of regulation, which is a FALSE statement?
A) Airline safety standards have increased the price of air travel.
B) Automobile safety standards raise the price of cars.
C) Regulatory spending by federal agencies has decreased since 1970.
D) Pharmaceutical manufacturing safety standards raise the price of drugs.
Answer: C
You might also like to view...
Compared to perfect competition, a monopoly usually does not result in
a. higher prices. b. the use of fewer resources. c. a less elastic demand curve. d. less profit.
When a perfectly competitive industry is in long-run equilibrium, firms maximize profits, and entry forces the price down
A. until all firms with losses leave the industry. B. until each firm can earn acceptable level of economic profit. C. until price becomes tangent to the long-run average cost curve. D. until the long-run average cost curve rises above the demand curve.
Asymmetric information exists when one participant in a market transaction has more information than the other participant
a. True b. False
Because almost all economists oppose policies that restrict trade among nations, policymakers do not restrict imports of certain goods
a. True b. False Indicate whether the statement is true or false