Recall the Application about the merger of Sirius Satellite Radio and XM Satellite Radio to answer the following question(s).Recall the Application. What were the tradeoffs that government regulators had to consider in determining whether to allow Sirius and XM to merge?
What will be an ideal response?
They had to weigh the benefits of the cost-savings due to economies of scale against the threat that a single monopolist would raise prices to consumers.
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Arguments for discretionary policies include
A) policy rules can be too rigid because they cannot foresee every contingency. B) the time-inconsistency problem can lead to poor economic outcomes. C) discretionary policies pursue overly expansionary monetary policies to boost employment in the short run but generate higher inflation in the long run. D) all of the above.
Which of the following is a possible solution to the adverse selection problem?
a. Screening b. Signaling c. All of the above d. None of the above
When a market consists of a few large firms and barriers to entry exist, it:
A. must be monopolistically competitive. B. is likely an oligopoly. C. is likely a monopoly. D. must be perfectly competitive.
The quantity of money people are willing and able to hold at alternative interest rates, ceteris paribus, is known as the
A. Supply of money. B. Demand for money. C. Equilibrium of money. D. None of the choices are correct.