Which of the following would be the best example of regulatory capture?
A. Starbucks buys up all the available supplies of coffee beans.
B. Nike executives influence the rules for track and field events.
C. Federal law makers write and pass legislation that protects domestic companies from
foreign competition.
D. Executives from the Ford, General Motors, and Chrysler companies write the rules
regulating automobile safety and fuel requirements.
Answer: D
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Assume that an economy is in equilibrium when there occurs an increase in the supply of capital. The available quantity of labor remains fixed. Once the economy has adjusted to its new equilibrium, which of the following has increased?
A) the real wage B) the rental price of capital C) the share of capital income in national income D) all of the above E) none of the above
Market equilibrium is: a. defined as the condition in which there is neither a shortage or surplus
b. defined as the condition under which the separately formulated plans of buyers and sellers exactly mesh when tested in the market. c. represented graphically by the intersection of the supply and demand curves. d. all of the above.
The question of whether the government should intervene at all in economic matters is entirely political
a. True b. False Indicate whether the statement is true or false
Advertising most likely has the strongest effect on changes in ______.
a. income b. taste c. inferior goods d. complements