Government failure may occur die to:
a. short run focus of elected officials
b. special-interest group influence
c. difficulty is measuring the marginal social benefit and the marginal social cost of government spending
d. all of the above
Answer: d. all of the above
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Limit pricing is a strategy which is intended to deter entry into an industry
Indicate whether the statement is true or false
If the price level rises from 125 to 150 from one year to the next, then the rate of inflation that year is 25 percent.
Answer the following statement true (T) or false (F)
Shortly after the turn of the century, U.S. Steel owned most of the iron ore reserves in the country. This is an example of
A. a barrier to entry from owning an important resource. B. monopoly due to government restrictions. C. a barrier to entry from scale economies. D. monopoly due to governmental entry restrictions.
Refer to the diagram that shows the market for U.S. health care. Other things equal, which of the following would shift the demand curve for medical care from D 1 to D 2 ?
A. Higher copayments and deductibles in insurance policies.
B. An aging population.
C. Cutbacks in the government's Medicaid program.
D. Restrictions by firms on the eligibility of part-time workers for medical benefits.