Imperfect information on the part of buyers and sellers
A. remains a barrier to achieving market efficiency, at least in some industries.
B. is no longer a problem because the "truth-in-advertising" regulations have been instituted.
C. cannot persist in a market economy.
D. will not stop the economy from achieving market efficiency, assuming the other conditions for market efficiency hold.
Answer: A
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Because the actual market-capitalist system is a combination of market processes and political processes,
A) it can only be managed appropriately by well-trained political economists. B) it is often unclear where to place the blame when things go wrong. C) political considerations will always ruin the market process. D) economic considerations will always ruin the political process.
The assumption that wages change more slowly than prices provides an argument for the
A) aggregate demand curve having a positive slope. B) aggregate demand curve having a negative slope. C) aggregate supply having a negative slope. D) aggregate supply having a positive slope.
Government regulation of monopolies is designed to
a. prevent price discrimination b. eliminate rent-seeking activities c. reduce barriers to entry into monopolized markets d. keep prices and profits lower than they would otherwise be e. ensure that monopolies are minimizing costs
What potential problems are created by regulatory competition?
What will be an ideal response?