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
Coercion and force underlie government activity. a. True b. False ANSWER a
Date: September 9th, 2020
Nabamitta is a doctor in a foreign country. When she first began medical school the number of doctors in her country was strictly limited by the government. Although the barriers to becoming a doctor were high, she invested nearly a decade of her life attempting to get a license because she knew if she received […]
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
Which of the following is a normative economics statement? a. An increase in the minimum wage will reduce teenage employment. b. Increasing the minimum wage will result in more votes for progressive candidates. c. Raising the minimum wage would greatly increase labor costs in certain industries. d. Raising the minimum wage is a poor idea […]
Date: September 9th, 2020
Insufficient _____ can make regulation counterproductive. a. information b. funding c. monitoring d. time ANSWER a
Date: September 9th, 2020
Which of the following statements about the social welfare function is not true? a. It can be thought of as a set of indifference curves that depict the wealth of the entire society. b. It does not employ interpersonal utility comparisons. c. It is one possible method for evaluating the public interest/ d. It allows […]
Date: September 9th, 2020
Government regulators know that pollution is a problem in Cleveland. However, information on the social cost of this externality is difficult to come by. Which of the following statements best describes how this information problem might manifest itself? a. Well-intentioned regulators monitor a handful of polluting factors and are unable to determine how much they […]
Date: September 9th, 2020
