Which of the following is a problem with government regulation of natural monopolies?
a. creation of excessive profits levels
b. reduced incentives to cut costs
c. decreased number of firms in the market
d. lack of influence from special interest groups
Question 2
As a result of the government procurement policy in the U.S.:
a. the domestic consumers are required to pay a higher price than the world price for the domestically produced goods.
b. the government wields the sole authority of importing goods from abroad.
c. the government wields the sole authority of exporting goods.
d. the domestic producers can charge the government a higher price for their products than they charge consumers.
e. the government is required to sponsor research and development for the domestic firms.
Low (or No) Natural Growth
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