Compared to perfect competitors in the long run, oligopolists charge ______ prices and earn more ______.

What is the drawback for a country that chooses to fix its exchange rate?

a. Fixing the exchange rate can deteriorate the international competitiveness because the real exchange rate can't fluctuate anymore. b. Businesses in the country are more exposed to business risks associated with exchange rate changes. c. The central bank loses its ability to influence the money supply, unless severe capital controls are imposed. d. Fixing the exchange rate has no disadvantages and should be adopted by all countries.

Answer the following statement true (T) or false (F)

1) The Securities and Exchange Commission's supervision of Wall Street financial firms is a possible example of regulatory capture. 2) Economists widely support deregulation of industries that tend toward monopoly or generate substantial negative externalities. 3) Deregulation is seen as a solution to regulatory capture because it eliminates the regulatory agency that can or has been captured. 4) Government loan guarantees tend to socialize gains and privatize losses. 5) Government guarantees that socialize losses and privatize gains tend to encourage risky and imprudent investment.