In comparison to a government that runs a balanced budget, when the government runs a budget deficit

Which of the following best describes the capture theory of regulation?

i. Regulation seeks an efficient use of resources. ii. Regulation is aimed at keeping prices as low as possible. iii. Regulation helps firms maximize economic profit. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii

As an economy's capital stock increases, the economy

A) generally experiences increased unemployment of other resources, such as labor. B) generally decides to engage in international trade. C) experiences economic growth. D) gains an absolute advantage in the production of capital goods.