Discuss three types of antitrust policy.
What will be an ideal response?
The three types of antitrust policy used by the government are 1) breaking up monopolies; 2) blocking mergers; and 3) regulating business practices. The government breaks up monopolies to increase competition and increase efficiency. Increased competition leads to lower prices. Mergers can also lead to lower competition and high prices. Sometimes it makes sense to allow the existence of a monopoly or allow a merger because the cost savings from the economies of scale justify it. In these cases, the government can regulate the firms to achieve a more efficient economic state.
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_____ is a stock measure of an individual's or household's assets and net liabilities, at a given point in time.
a. Wealth b. An asset c. Assets, wealth, and income are all stock measures. d. Income
Which of the following statements best describes the relationship between risk and the average expected return of investments?
A. Less risky assets will have similar average expected rates of return to more risky assets B. Less risky assets will have higher average expected rates of return than more risky assets C. More risky assets will have higher average expected rates of return than less risky assets D. More risky assets will have lower average expected rates of return than less risky assets