The costs associated with regulation are a source of government failure.
Answer the following statement true (T) or false (F)
True
Government failure may be worse than market failure. Specifically, regulation may lead to price, cost, or production outcomes that are inferior to those of an unregulated market.
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Refer to the above payoff matrix for the profits (in $ millions) of two firms (A and B) making a decision to advertise or not. Which of the following is the outcome of the dominant strategy without cooperation?
A) Both firm A and firm B choose not to advertise. B) Both firm A and firm B choose to advertise. C) Firm A chooses to advertise while firm B chooses not to advertise. D) Firm A chooses not to advertise while firm B chooses to advertise.
In the U.S. economy, labor receives
A. the lowest share of income. B. the highest share of income. C. about a quarter of income. D. about three-quarters of income.
Increases in the value of existing assets are called:
A. investment. B. capital gains. C. saving. D. capital losses.
(Interest Rate, Planned investment in billions): (3%,$400) (6%,$360), (9%, $320), (12%, $280), (15%, $240), (18%, $200): If the interest rate dropped from 15% to 6%, planned investment would ________ by $________ billion.
A) increase; 120 B) increase; 180 C) decrease; 120 D) decrease; 180