Why do supporters of social regulation need to remember that “there is no free lunch”?
What will be an ideal response?
The economic effects from regulation are generally negative. They result in higher prices for consumers, tend to reduce innovation because of fear of not meeting a guideline or rule, and they can reduce competition because only well-financed firms may be able to comply with a regulation.
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The decision by a nation to join a currency union is based on:
A) the size of the nation's GDP. B) the diversification of its industry and population. C) the cost of designing, printing, and managing a national currency. D) the costs of abandoning a national currency versus the benefits of a common currency.
The reason we study the sequential labor negotiation game:
a. Is to show that these games usually go on for rounds and rounds b. Is to show the importance of the first mover being able to commit to an offer c. Is to show the importance of the second mover being able to commit to an offer d. Is to show the problems of prisoners dilemmas