Which of the following is true of regulation?
What will be an ideal response?
Regulatory agencies often ignore the secondary effects of their actions and fail to foresee future problems.
You might also like to view...
Which of the following information about fiat money is false?
A) It must be issued by a sanctioned monetary authority. B) It serves as a medium of exchange. C) It has virtually no intrinsic value. D) All of the above statements about fiat money are true.
The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the ________ part of one of the two big economic questions
A) "when" B) "for whom" C) "how" D) "why"
Explain the effects of a tariff on domestic production, the quantity bought, and the price
What will be an ideal response?
Assume that the LCD and plasma television sets industry is perfectly competitive. Suppose a producer develops a successful innovation that enables it to lower its cost of production. What happens in the short run and in the long run?
A) The firm will probably incur losses temporarily because of the high cost of the innovation, but in the long run it will start earning positive profits. B) The firm will be able to increase its economic profits temporarily, but in the long run its economic profits will be eliminated as other firms copy the innovation. C) Initially, the firm will be able to increase its profit significantly, but in the long run its profits will still be greater than zero but lower than its short-run profits because other firms would also innovate. D) This firm will be able to earn above normal profits indefinitely if it obtains a patent for its innovation.