What are the major rationales for consumer protection in nonmonopolistic industries?
What will be an ideal response?
The main rationales for consumer protection in nonmonopolistic industries are: (1 ) the presence of market failures, which induce governments to correct the externalities; and (2 ) the presence of asymmetric information for certain products so that the government can ensure consumers are protected.
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Which of the following is a policy tool of the Fed?
i. setting the required reserve ratios ii. conducting open market operations iii. quantitative easing A) i only B) ii only C) iii only D) Both i and ii E) i, ii, and iii
In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases,
A) the curve will shift rightward. B) the curve will shift leftward. C) there is a movement along the curve. D) the curve will be unaffected. E) None of the above answers is correct because the graph assumes that the price of pecans does not change.