Which of the following is NOT a reason for the government to regulate a nonmonopolistic industry?
A. to protect consumer interests
B. market failures
C. asymmetric information
D. to allow firms to achieve the profit maximizing output
Answer: D
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Refer to the above supply and demand graph for a public good. Which one of the following statements is correct?
A. There will be an overallocation of resources at output level Q1. B. The supply curve reflects the marginal cost and the demand curve reflects the marginal benefit of this public good. C. There will be an underallocation of resources at output level Q3. D. The demand curve reflects the marginal cost and the supply curve reflects the marginal benefit of this public good.
Economies of scale exist where the long-run average cost curve is
A. upward sloping. B. horizontal. C. downward sloping. D. tangent to the marginal cost curve.
An inflation rate that is lower than expected benefits creditors.
Answer the following statement true (T) or false (F)
Which of the following would contribute to a sustained high rate of economic growth in the long run in an economy?
A) an influx of immigrant labor into an economy without any accompanying technological change B) a shift of workers in the economy from the agricultural sector to the nonagricultural sector C) increases in labor force participation rates as workers who are out of the labor force pursue rising wages D) growth in capital per hour worked accompanied by technological change