Question 1

The concept of laissez faire calls for government intervention if market failure is evident.

Accepted Answer

A) True 
 B)False

Question 2

In which of the following markets did deregulation contribute to increased industry concentration?

Accepted Answer

A) Airlines. 
B) Cable TV. 
C) Trucking. 
D) Railroads. 
A) Airlines. 
B) Cable TV. 
C) Trucking. 
D) Railroads.

Question 3

Hiring over 280,000 U.S.federal workers to oversee and operate regulatory agencies involves

Accepted Answer

A) Zero costs since the market outcomes will be improved. 
B) Government failure in every case. 
C) Forgoing output that could be produced if the workers were employed elsewhere. 
D) Some opportunity costs only if market outcomes do not improve. 
A) Zero costs since the market outcomes will be improved. 
B) Government failure in every case. 
C) Forgoing output that could be produced if the workers were employed elsewhere. 
D) Some opportunity costs only if market outcomes do not improve.

Question 4

When the market does not lead to an optimal allocation of resources,there must be

Accepted Answer

A) Too much regulation. 
B) A market failure. 
C) Proper antitrust laws in place. 
D) A competitive market structure. 
A) Too much regulation. 
B) A market failure. 
C) Proper antitrust laws in place. 
D) A competitive market structure.

Exam 27: Natural Monopolies: Deregulation

The concept of laissez faire calls for government intervention if market failure is evident.

In which of the following markets did deregulation contribute to increased industry concentration?

Hiring over 280,000 U.S.federal workers to oversee and operate regulatory agencies involves

When the market does not lead to an optimal allocation of resources,there must be

Economics: the Core Issues

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