« previous next »

Author Question: What arguments can be made for government regulation of concentrated markets? What arguments can be ... (Read 189 times)

ishan

  • Hero Member
  • *****
  • Posts: 546
on: Jun 29, 2018
What arguments can be made for government regulation of concentrated markets? What arguments can be made against such government regulation?
 
  What will be an ideal response?

Question 2

Refer to Figure 10-6. The loanable funds market is given in the figure above. If the current real interest rate is 5 percent, which of the following is true?
 
  A) The quantity of loanable funds being demanded in the market is less than 90 million.
  B) The loanable funds market is in equilibrium.
  C) There is a surplus of loanable funds in the market.
  D) There is a shortage of loanable funds in the market.


mmj22343

  • Sr. Member
  • ****
  • Posts: 297
Reply #1 on: Jun 29, 2018
Answer to Question 1

Arguments for government regulation generally rely on the fact that high levels of concentration lead to inefficiency and thus the government should act to improve the allocation of resources. Arguments against government regulation often point to the fact that the most effective barriers to entry are those which have been created by the government. Thus, the outcome with government involvement can end up less efficient than it would have with no government involvement.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Listening to Normal Speech or Its Prosodic Components Functional MRI scans were made while subjects Listening to Normal Speech or Its Prosodic Components Functional MRI scans were made while subjects
Selected Hormones and Their Regulation Selected Hormones and Their Regulation
A simple and easy-to-use tester can be made from a lighter plug and double banana plug that fits ... A simple and easy-to-use tester can be made from a lighter plug and double banana plug that fits ...
Regulation of E. coli ribonucleotide reductase by reversible oligomerization Regulation of E. coli ribonucleotide reductase by reversible oligomerization
Farmers’ markets provide fresh, local produce to consumers Farmers’ markets provide fresh, local produce to consumers
Arguments take place when partners are home from work Arguments take place when partners are home from work
Video: Neuron Type Animation

For a complete list of videos, visit our video library