Filters
Question type
Study Flashcards

-One type of economic regulation often used in the United States by various public utility commissions allows prices to reflect only the actual cost of production and no monopoly profits. This type of economic regulation is known as A) rate-of-return regulation. B) cost-of-service regulation. C) price per constant-quality-unit regulation. D) creative response regulation. -One type of economic regulation often used in the United States by various public utility commissions allows prices to reflect only the actual cost of production and no monopoly profits. This type of economic regulation is known as


A) rate-of-return regulation.
B) cost-of-service regulation.
C) price per constant-quality-unit regulation.
D) creative response regulation.

Correct Answer

verifed

verified

-In the above figure, what would be the profit or loss at the marginal cost pricing point for this natural monopolist? A) -$300 B) $2,700 C) $2,100 D) -$1,200 -In the above figure, what would be the profit or loss at the marginal cost pricing point for this natural monopolist?


A) -$300
B) $2,700
C) $2,100
D) -$1,200

Correct Answer

verifed

verified

For a firm to be economically efficient from society's point of view, it should produce to the point at which


A) marginal cost equals marginal revenue.
B) marginal cost equals average total cost.
C) marginal cost equals price.
D) average total cost equals price.

Correct Answer

verifed

verified

"Regulations do not always have the intended result." Do you agree or disagree? Why?

Correct Answer

verifed

verified

Agree. Firms often try to avoid the effe...

View Answer

A potential benefit that comes from social regulations would be


A) higher costs.
B) a cleaner environment.
C) higher tax collections.
D) more layoffs.

Correct Answer

verifed

verified

When the fox is guarding the henhouse, that is an example of the


A) share-the-gains, share-the-pains theory.
B) regulatory hypothesis.
C) capture hypothesis.
D) creative theory.

Correct Answer

verifed

verified

A common feature of regulated industries is cross-subsidization, which is a situation when one group of customers pays prices above costs while another group of customers pays prices below costs. The one group is subsidizing the other group. Is this practice more consistent with the capture hypothesis or the share-the-gains, share-the-pains theory? Explain.

Correct Answer

verifed

verified

Cross-subsidization is more consistent w...

View Answer

If antitrust legislation is successful, then


A) firms will produce the quantity at which marginal cost equals marginal revenue.
B) most firms will be earning a positive economic profit.
C) the price of each item will equal its marginal social opportunity costs.
D) natural monopoly will be eliminated.

Correct Answer

verifed

verified

This agency is responsible for investigating complaints of discrimination based on race, religion, sex or age in hiring, promotion, firing, wages, testing, and all other conditions of employment.


A) Environmental Protection Agency
B) Food and Drug Administration
C) Equal Employment Opportunity Commission
D) Federal Trade Commission

Correct Answer

verifed

verified

What is the lemons problem? How do firms try to address this problem?

Correct Answer

verifed

verified

The lemons problem occurs when asymmetri...

View Answer

-Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price A) and sell units. B) and sell units. C) and sell units. D) and sell units. -Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price


A) -Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price A) and sell units. B) and sell units. C) and sell units. D) and sell units. and sell -Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price A) and sell units. B) and sell units. C) and sell units. D) and sell units. units.
B) -Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price A) and sell units. B) and sell units. C) and sell units. D) and sell units. and sell -Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price A) and sell units. B) and sell units. C) and sell units. D) and sell units. units.
C) -Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price A) and sell units. B) and sell units. C) and sell units. D) and sell units. and sell -Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price A) and sell units. B) and sell units. C) and sell units. D) and sell units. units.
D) -Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price A) and sell units. B) and sell units. C) and sell units. D) and sell units. and sell -Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price A) and sell units. B) and sell units. C) and sell units. D) and sell units. units.

Correct Answer

verifed

verified

The potential for a decline in product quality due to asymmetric information is commonly referred to as


A) the lemons problem.
B) planned obsolescence.
C) diminishing marginal product.
D) the externality problem.

Correct Answer

verifed

verified

A creative response to regulations can be described as


A) conforming to the letter of the law but undermining its spirit.
B) totally conforming to the law.
C) completely ignoring the law.
D) none of the above.

Correct Answer

verifed

verified

The Supreme Court has defined the offense of monopolization as involving all of the following elements EXCEPT


A) the possession of monopoly power in the relevant market.
B) the willful acquisition of monopoly power.
C) the ability to grow a business as a consequence of a superior product.
D) the maintenance of monopoly power.

Correct Answer

verifed

verified

As a result of a conviction under the Sherman Antitrust Act, Standard Oil of New Jersey


A) was fined for its extensive price discriminating activity.
B) was restrained from oil exploration for twenty-five years, which enabled other oil firms to assume leadership in the industry.
C) was broken up into many smaller companies.
D) went bankrupt and no longer is in existence.

Correct Answer

verifed

verified

According to the Justice Department and the Federal Trade Commission, a merger would likely be challenged if


A) the post-merger industry has an HHI above 1,000 and the HHI rises by more than 100.
B) the post-merger industry has an HHI above 500 and the HHI rises by more than 50.
C) the number of firms in the post-merger industry is very large.
D) the firms' markets are very large.

Correct Answer

verifed

verified

The act of offering two or more products for sale as a set is called


A) bundling.
B) versioning.
C) tie-in sales.
D) branding.

Correct Answer

verifed

verified

Which of the following federal agencies is engaged in economic regulation?


A) Occupational Safety and Health Administration
B) Federal Motor Carrier Safety Administration
C) Food and Drug Administration
D) Consumer Product Safety Commission

Correct Answer

verifed

verified

The two basic types of government regulation are


A) monopoly and oligopoly regulation.
B) labor and environmental regulation.
C) federal and state industrial regulation.
D) economic and social regulation.

Correct Answer

verifed

verified

Which of the statements best describes the difference between economic regulation and social regulation?


A) There are no significant differences between economic and social regulation, social regulation is a more modern way of regulating an economy.
B) Economic regulation focuses on output and price; social regulation focuses on improving the quality of life.
C) Social regulation focuses on output and price; economic regulation focuses on quality of life issues.
D) Social regulation targets industries like transportation, while economic regulation targets utilities.

Correct Answer

verifed

verified

Showing 221 - 240 of 309

Related Exams

Exam 1

The Nature of Economics

347 Questions

Exam 2

Scarcity and the World of Trade-Offs

411 Questions

Exam 3

Demand and Supply

448 Questions

Exam 4

Extensions of Demand and Supply Analysis

399 Questions

Exam 5

Public Spending and Public Choice

359 Questions

Exam 6

Funding the Public Sector

202 Questions

Exam 19

Demand and Supply Elasticity

413 Questions

Exam 20

Consumer Choice

457 Questions

Exam 21

Rents, Profits, and the Financial Environment of Business

445 Questions

Exam 22

The Firm: Cost and Output Determination

387 Questions

Exam 23

Perfect Competition

431 Questions

Exam 24

Monopoly

386 Questions

Exam 25

Monopolistic Competition

309 Questions

Exam 26

Oligopoly and Strategic Behavior

302 Questions

Exam 28

The Labor Market: Demand, Supply and Outsourcing

374 Questions

Exam 29

Unions and Labor Market Monopoly Power

316 Questions

Exam 30

Income, Poverty, and Health Care

302 Questions

Exam 31

Environmental Economics

299 Questions

Exam 32

Comparative Advantage and the Open Economy

313 Questions

Exam 33

Exchange Rates and the Balance of Payments

300 Questions

Show Answer