Government regulation in the form of subsidies, tariffs, licensing, and inspections does which of the following?
(a) Creates rents for businesses
(b) Offers profits to some businesses at the expense of others
(c) Encourages the inefficient use of productive resources
(d) All of the above
(d)
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Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price
Indicate whether the statement is true or false
The Coase Theorem states that the private sector can achieve environmental efficiency, as long as property rights are clearly assigned
a. True b. False Indicate whether the statement is true or false
Refer to Figure 13-3. Which of the points in the above graph are possible short-run equilibria but not long-run equilibria? Assume that Y1 represents potential GDP
A) A and B B) B and D C) A and C D) C and D
The long-run supply curve in a constant-cost, perfectly competitive industry is
A) perfectly inelastic. B) upward sloping. C) downward sloping. D) perfectly elastic.