One problem with industrial policies is that
A) R&D only benefits the firm that conducts it.
B) governments usually target the wrong industries.
C) it is difficult to measure the extent of market failure.
D) it is not politically popular to support industries.
C
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A neighbor plants flowers in their front yard, which you can view and enjoy from your window. From your perspective, this is an example of
A. an externality. B. marginal analysis. C. property rights. D. an opportunity cost.
The Federal Reserve responded to the 2008 financial crisis in several ways. Which of the following is one of the ways the Fed responded?
A) The Fed helped Citibank to acquire General Motors and Chrysler. B) The Fed lent investment banks Treasury securities in exchange for mortgage-backed securities. C) The Fed lowered the required reserve ratio on demand deposit accounts in order to increase the amount of bank reserves. D) The Fed banned investment banks from obtaining discount loans.
What crucial role do financial intermediaries perform in an economy?
What will be an ideal response?
Hotels R Us and Hotel Supply are two hotel toiletry suppliers that are competing with each other. If Hotels R Us announces an upcoming price change next month, it may be signaling to Hotel Supply its intent to engage in ________.
A) a Cournot oligopoly B) a Stackelberg oligopoly C) tacit collusion D) a Chamberlin oligop