The equilibrium level of regulation is _____
a. determined where marginal political gains to the special interests are equal to the marginal political costs of the foregone regulation
b. determined where the marginal benefits from the regulation are equal to the marginal costs of the regulation
c. determined where the marginal political benefits to the special interests are equal to zero
d. determined where the marginal benefits from the regulation are equal to zero
a
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During the period of rapid industrialization in the U.S. after the Civil War,
(a) real farm incomes fell drastically. (b) real incomes in the agricultural sector increased at a faster pace than real incomes in manufacturing. (c) real incomes in the agricultural sector increased at relatively the same rate as real incomes in manufacturing. (d) real incomes in the agricultural sector increased but at a slower pace than real incomes in manufacturing.
If an excise tax is placed on a product that has a perfectly inelastic demand, then: a. the entire tax will be paid by the consumer
b. the entire tax will be paid by the producer. c. the consumer and producer will each pay a share of the tax. d. the incidence of the tax cannot be determined unless we know the coefficient of price elasticity of supply. e. the tax is progressive.