Government regulation can improve economic efficiency if _____
a. regulators encourage uncompetitive markets to act competitively
b. regulators have private information firms do not have
c. regulators are able to coordinate inter-industry actions to achieve efficiencies
d. regulators base their actions on the revealed preferences of market participants
a
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Refer to Table 19-27. What is the level of personal income for this economy?
A) $1,140 billion B) $1,010 billion C) $990 billion D) $860 billion
When oligopolists take into account their competitors' behavior, this situation is called:
a. mutual interdependence. b. monopolistic competition. c. independent. d. price discrimination. e. loss minimization.
The tragedy of the commons refers to the:
A. overuse of resources that have no price. B. failure of the Coase theorem when negotiation is costly. C. under production of goods that have external benefits. D. overuse of resources that have no cost.