Which of the following statements is true?
A. The active antitrust perspective believes that competitive market forces will automatically and actively reduce a firm's monopoly power in the long run
B. The active antitrust perspective believes that the government should play the role of officials and umpires and enforce the rules of the competitive game
C. The laissez-faire perspective views firms as players in a competitive game who will sometimes violate the rules in order to gain a huge advantage over others
D. The laissez-faire perspective believes that an active enforcement of antitrust policy is the only way to reduce the monopoly power of giant firms
B. The active antitrust perspective believes that the government should play the role of officials and umpires and enforce the rules of the competitive game
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The negative impact of the loss of value of collateralized assets is due to
A) asymmetric information. B) Ricardian Equivalence. C) limited commitment. D) financial intermediation through banks.
The Interstate Commerce Commission (ICC) was established in 1887 to regulate:
a. banking. b. railroads and all surface transportation. c. nationwide advertising. d. interstate sales of food and drugs.
If real GDP in 2005 is $8,000 billion and the price level is 125, what is nominal GDP in 2005?
A. $10,000 billion B. $9,200.5 billion C. $5,000 billion D. $6,830.6 billion
Refer to the above figure. How do you describe what is happening as the economy moves from point A to point B?
A. The technology for growing wheat has improved. B. Land that was once used to grow wheat is now being used to graze sheep. C. The economy has acquired new resources that are well suited for producing wool. D. The economy is producing more bread by choosing to produce less wool.