Answer the following questions true (T) or false (F)
1. GDP is not a complete measure of well-being.
2. The size of the underground economy as a percent of GDP is larger in the United States as compared to poorer countries such as Zimbabwe.
3. If an increase in crime causes households to spend money on police and security systems, GDP will rise.
1. TRUE
2. FALSE
3. TRUE
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XM Satellite Radio and Sirius Satellite, who are the only major satellite radio companies serving the United States, were given permission in March of 2008 by the Justice Department to merge
Can you think of any reasons why there was no real worry about monopoly power?
What is one reason existing firms might lobby the government to increase regulation in their industry?
A) It increases entry and exit costs, thereby reducing producer surplus to existing firms. B) It increases entry and exit costs, thereby potentially increasing producer surplus to existing firms. C) It increases entry and exit costs, but has no impact on producer surplus. D) Firms cannot be trusted to treat their customers fairly and ethically.