Government outlays
a. are the same as "G" in the short-run macro model.
b. do not include transfer payments.
c. are always smaller than government purchases.
d. are always greater than government purchases.
e. tend to decline in the long run.
D
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One undesirable effect of social regulation is that it
A) affects smaller firms disproportionately, creating anticompetitive effects. B) destroys incentives for firms to engage in marginal cost pricing. C) raises prices of goods to consumers, while lowering prices to business and special interest groups. D) reduces the effectiveness of economic regulation.
In the long run in a competitive market,
a. existing firms can increase their plant size, and new firms can enter the market b. existing firms can increase their plant size, but the number of firms is the market is fixed c. new firms can enter the market, but existing firms cannot vary their plant size d. new firms can enter the market, but only if existing firms decrease their plant size in the short run e. existing firms can increase their plant size, only if some other firms exit