Which of the following is motivated by an equity concern?
A) Some U.S. colleges have cut back on merit scholarships since these programs siphon money from need-based programs, thus harming lower-income students with greater financial need.
B) Following the removal of subsidies in urban water use, household demand for water decreased quite significantly in Bogor, Indonesia.
C) In November 2003, the Federal Communications Commission implemented the "local number portability" rule which gives cell phone customers the option of keeping their number when they switch carriers within the same geographic region.
D) The United States protects intellectual property rights, allowing inventors to prevent others from using their inventions without payment.
Answer: A
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Which of the following is a way to compute GDP?
a. add up the wages paid to all workers b. add up the quantities of all final goods and services c. add up the market values of all final goods and services d. add up the difference between the market values of all final goods and services and then subtract the costs of producing those goods and services
Compare and explain the significance of the substitution and output effects as they apply to resource pricing. What relationship, if any, do they bear to the income and substitution effects discussed in connection with product demand?
What will be an ideal response?
Which of the following is an example of the economies of scale argument for increased profits for large financial holding companies?
A. Financial holding companies are well diversified so risk is reduced. B. Financial holding companies offer a wide array of services under one name. C. Financial holding companies need only one CEO, one Board of Directors, and one accounting system regardless of size. D. The profitability of financial holding companies does not rely on one particular line of business.
In a competitive market where the elasticity of the market demand curve is -2, the elasticity of the supply curve is 1, and an individual firm faces a residual demand curve with an elasticity of -98. What is the number of firms in this market?
A) 10 B) 20 C) 33 D) Cannot be determined.