The so-called "rule of reason", based on the 1920 U.S. Steel case, stipulates that a merger of two firms in an industry is:
A. Illegal if the firms are large
B. Illegal because it increases the monopoly power of the resulting firm
C. Legal if there is no resulting unreasonable restraint of trade
D. Legal because the firm will be subject to regulatory control
C. Legal if there is no resulting unreasonable restraint of trade
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If a firm is earning negative economic profits, it implies
a. That the firm's accounting profits are zero b. That the firm's accounting profits are positive c. That the firm's accounting profits are negative d. More information is needed to conclude about accounting profits
A flat tax
A. Includes many tax brackets. B. Encourages economic activity through deductions and credits. C. Completely eliminates potential vertical inequities. D. Reduces the government's ability to alter the mix of output.
One reason why present dollars are worth more than future dollars is because income-earning investment opportunities exist.
Answer the following statement true (T) or false (F)
Government spending is funded by a system of
A. taxation and borrowing. B. checks and balances. C. policies and laws. D. states and cities.