The flypaper effect is _____
a. that government grants get shifted around to other uses
b. that government grants get spent on what they were intended to be spent on
c. that government grants are used to lower tax rates
d. that government grants are not used by local governments
b
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In a short run competitive equilibrium
A) the market demand curve is horizontal. B) the market demand curve is downward sloping. C) the market demand curve is perfectly inelastic. D) All of the above are possible.
A merger between a shoelace company and a soup company might be undertaken to
a. eliminate a potential competitor b. enhance a supplier-purchaser relationship c. diversify assets and production d. raise the Herfindahl-Hirschman Index in the shoelace industry e. raise the concentration ratio in the soup industry