Which of the following refers to the capture hypothesis of regulation?
A) the ability of the government to capture monopoly profits
B) the control of regulatory agencies by firms in an industry
C) consumer cost savings captured through regulation
D) horizontal mergers
Answer: B
Economics
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Which of the following institutional arrangements is most likely to promote growth?
A. Patents and copyrights that expire quickly and are loosely enforced. B. Strong government control over resource allocation decisions. C. Unrestricted trade between nations. D. All of these.
Economics
Explain what the Saudi oil minister meant when he warned OPEC of using its market power too much by saying "Remember, the Stone Age did not end because we ran out of stones."
What will be an ideal response?
Economics