According to the capture hypothesis of regulation
A. regulation benefits the consumers over producers because the number of consumers is greater than the number of producers, giving the consumers more political clout.
B. regulation eventually favors producers over consumers because the producers have more at stake than individual consumers.
C. regulation favors producers over consumers because the producers were able to pay off the regulators.
D. regulation benefits the regulators and the legislators who support the regulation by enabling them to obtain favors from both producers and consumers.
Answer: B
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Suppose you have $400 to invest at a nominal interest rate of 7 percent, and the investment's term to maturity is 1 year. If the inflation rate is 2 percent, then the real return on your investment is approximately
A) $8. B) $20. C) $28. D) $36.
Under what conditions does an oligopoly market result in the same outcome as monopoly? What does this imply for the oligopoly's long-run profits?
What will be an ideal response?
Firms in perfect competition have no control over
a. all of the following b. where to operate on their average total cost curves c. what price to charge d. how many inputs to use e. how much to produce
Assume the US has a comparative advantage in producing large jets (LJs) and Brazil has a comparative advantage in producing small jets (SJs). Assume further that the US has an absolute advantage in producing both LJs and SJs. Which of the following would most likely shift the PPFs for both countries to the right?
a)The US produces both LJs and SJs and trades with Brazil who will produce something else. b) The US will produce all LJs and Brazil will produce all SJs and they will NOT trade with each other. c) The US will produce all SJs and Brazil will produce all LJs and they WILL trade with each other. d) The US will produce all LJs and Brazil will produce all SJs and they WILL trade with each other. e) If each country produces LJs and SJs up to the point where the opportunity cost of each is zero.