What MIGHT be the purpose of government regulation of natural monopolies, or economies of scale?
A) Government regulation might be used to facilitate competition.
B) Government regulation might be designed to put a firm out of business.
C) Government regulation might be intended to raise prices on all consumers.
D) Government regulation might be created for less oversight of a profitable business.
Answer: A) Government regulation might be used to facilitate competition.
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
If wages and prices adjust rapidly, we would expect expansionary monetary policy to be
A) more likely to affect the unemployment rate. B) more likely to reduce the natural rate of unemployment. C) less likely to affect the unemployment rate. D) less likely to result in a vertical short-run Phillips curve.
Which of the following statements is true of government spending?
a. An increase in government spending raises the equilibrium level of income by a multiple of the original spending increase. b. Government spending is a part of monetary policy, not fiscal policy. c. A decline in government spending brings about an expansion in the economy. d. An increase in government spending increases the recessionary gap in the economy. e. An increase in government spending shifts the aggregate demand curve downward by a fraction of the rise in government spending.
The Clayton Act allowed board members of one corporation to sit on the board of a competing firm as long as inside information was not transmitted
Indicate whether the statement is true or false