Using the information in Situation 20-1, if aggregate output equals $8,000, the unplanned inventory investment equals

What weakness in the economic structures of Asian countries contributed to the severe financial crisis that Asian economies experienced in 1997?

A) Productivity: It increased rapidly and the countries were victims of their own success B) Banking regulation: Banks were excessively regulated, which reduced profits. C) Legal Framework: The system dealt unsuccessfully with companies in financial trouble D) Natural Resources: Countries' lack of natural resources and failure to explore developing industries accumulated and led to the crisis. E) High Taxes: High rates of taxation resulted in a reliance on imports.

The Interstate Commerce Commission (ICC) regulates railroads, barges and trucks. Suppose technical change lowers the costs of railroads

As a result, the ICC permits railroads to lower prices some but also alters the rates of barges and trucks so they get additional business. The ICC would be acting consistently with A) the capture theory of regulation. B) the public interest theory of regulation. C) the share-the-gains, share-the-pains theory of regulation. D) None of the theories presented in the text since economic regulation is specific to a single industry and not to agencies that cover more than one industry. That is the province of social regulation.