Monopolizing the sale of liquor
A) can lead to an increase in total welfare.
B) will decrease total welfare.
C) results in a deadweight loss.
D) is anti-competitive and thus lowers total welfare.
A
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According to the classical theory, an inward shift in aggregate demand would reduce
A) real Gross Domestic Product (GDP) and the price level. B) the price level but have no effect on real Gross Domestic Product (GDP). C) real income but have no impact on the price Gross Domestic Product (GDP). D) the price level but increase real Gross Domestic Product (GDP).
The banking industry is heavily regulated because
A. banking is a monopoly industry. B. most banks are owned by government agencies. C. bankers do what is best for their stockholders, not necessarily what is best for the economy. D. All of these responses are correct.