The transitional gains trap is a _____. a. by-product of some types of regulation b. associated with the move from a socialist to a market society c. associated with the move from a communal to a socialist society d. by-product of changing the rate at which capital gains are taxed ANSWER a
Date: September 9th, 2020
Production and exchange is beneficial as long as the demand curve lies below the supply curve. a. True b. False ANSWER b
Date: September 9th, 2020
Jane is a dietician in a city that twenty years ago voted to restrict the number of dieticians in the city to five and to regulate their prices. Although the city has tripled in size during that time (and thus demand has increased), no new dietician licenses have been issued. Over the years Jane and […]
Date: September 9th, 2020
Positive economic analysis _____. a. evaluates policy changes and determines whether it is a good idea b. seeks to understand the outcome of a policy change c. cannot be proven incorrect d. is a statement about “what ought to be” ANSWER b
Date: September 9th, 2020
The capture theory of regulation states that _____. a. regulators act in the best interests of regulators b. regulators act in the best interests of politicians c. regulators act in the best interests of the general public d. regulators act in the best interests of the regulated ANSWER d
Date: September 9th, 2020
Normative economic analysis _____. a. is concerned only with the facts b. is a statement about the relationship between a policy change an outcome c. judges the desirability of a policy change d. does not involve value judgments ANSWER c
Date: September 9th, 2020
Which of the following statements provides the best description of one reason why regulation of an industry might not increase economic efficiency? a. There are more employees of regulated industries than affected customers. b. Insufficient regulator pay makes it difficult to hire effective regulators. c. The regulated industry has stronger incentives to be involved in […]
Date: September 9th, 2020
Suppose an individual inverse demand curve is given as P = 2 – 1/2 qi, where qi is the quantity demanded by individual i. There are 50 individual consumers with this identical, individual inverse demand curve. Solve for the market demand curve. What will be an ideal response? ANSWER Solve for the individual, regular […]
Date: September 9th, 2020
If regulations create barriers to entry in an industry, the result can be _____. a. efficiency b. monopoly c. monopsony d. higher output ANSWER b
Date: September 9th, 2020
Government regulation is best applied in cases_____. a. where the marginal benefit of the regulation is greater than the cost of the bureaucracy b. where imposed rules can increase efficiency more than govt. production would c. where the marginal benefit of regulation improves the cost efficiency of the producers d. where imposed rules can increase […]
Date: September 9th, 2020
