Which of the following illustrates the economic inefficiencies of government regulation?
(a) Railroad rate increases are set by a government agency and these increases fall below increases in repair and depreciation costs but railroad passengers are satisfied.
(b) Competitive railroad rates are determined by the buying and selling actions of those in the railroad industry.
(c) Rate increases set by government agencies are set to match the increases in repair costs and the acceleration in depreciated capital.
(d) Government protects private and individual rights to goods, service and resources.
Question 2
Industrial growth and location changed while manufacturing employment rose in the Sun Belt and fell in the Frost Belt.
This growth and relocation were primarily due to the relocation of plants, functions and people moving from the Frost Belt to the Sun Belt. Indicate whether the statement is true or false
