The government is involved in the U.S. economy for all of the following reasons EXCEPT to
a. promote and encourage competition.
b. prevent monopolies that deny the public the benefits of competition.
c. regulate industries in which a monopoly is in the public interest.
d. promote the development of market externalities.
Ans: d. promote the development of market externalities.
You might also like to view...
Refer to Figure 10-2. Which of the following is consistent with the graph depicted above?
A) New government regulations decrease the profitability of new investment. B) The government runs a budget surplus. C) An expected expansion increases the profitability of new investment. D) There is a shift from an income tax to a consumption tax.
An example of the moral hazard problem in international investment would be that
A) those seeking funds for the riskiest projects are amongst those most actively seeking the funds. B) the recipients of the funds may use the funds for riskier projects than the approved project. C) government officials may demand higher than the usual amount of bribes. D) those seeking the funds are dishonest.