According to the capture hypothesis, it appears that regulators eventually end up
A) adopting policies that benefit the firms being regulated.
B) adopting policies that benefit consumers at the expense of the regulated firms.
C) adopting policies that benefit no one.
D) satisfying neither producers nor consumers, but striving to control as much as possible.
A
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Refer to Table 4-4. Suppose that the quantity of labor supplied increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $9.50; Q = 420,000 B) W = $9.00; Q = 410,000 C) W = $8.50; Q = 400,000 D) W = $8.00; Q = 390,000
If the marginal cost of producing steel exceeds the marginal utility of using steel, then for economic efficiency,
A. the price of steel should fall. B. society should produce less steel. C. the price of goods made with steel should fall. D. society should direct resources toward steel production and away from the production of other goods.
Game theory is based on the idea that each participant makes decisions based on how she believes the competition will react
a. True b. False Indicate whether the statement is true or false
Markets will always allocate resources efficiently
a. True b. False Indicate whether the statement is true or false