Government antitrust activity led to the breakup of AT&T in the 1980s because, among other things, it felt that AT&T had too much control over the telecommunications market. What type of market failure was most likely involved?
A.) Inequity
B.) Public goods
C.) Externalities
D.) Market power
D.) Market power
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In a graph of choice sets, a price change affects the ratio but does not affect the budget line.
Answer the following statement true (T) or false (F)
Which voter is the voter whose views on a policy issue are in the middle of the spectrum, with half of the voters on one side of this voter's view and half on the other side
a. Average voter b. Mean voter c. Modal voter d. Median voter
The crowding-out effect suggests that:
A. increases in government spending will close a recessionary expenditure gap. B. increases in government spending may raise the interest rate and thereby reduce investment. C. increases in consumption are always at the expense of saving. D. high taxes reduce both consumption and saving.
Which of the following is NOT a reason the Fed changes the rate of growth of the money supply?
A. to influence aggregate demand B. to influence the amount of investment C. to shift the demand for money curve D. to influence the amount of consumption