The total costs of regulation
A) include increased taxes and increased prices of the products being regulated.
B) are paid entirely by the regulated industries.
C) are much higher than just the explicit government outlays to fund the administration of various regulations.
D) are paid entirely by the consumers of regulated industries.
Answer: C
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If the demand for a firm's output is perfectly elastic, then the firm's Lerner Index equals
A) zero. B) one. C) infinity. D) one-half.
A U.S. trade policy that restricts the sale of foreign goods in the U.S. market will
a. reduce the demand for U.S. export goods since foreigners will be less able to buy our goods if they cannot sell to us. b. benefit producers in industries that export goods. c. increase the nation's income since it protects domestic jobs. d. enhance economic efficiency by allocating more resources to the areas of their greatest comparative advantage.