Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ?

Related Mcqs:

1. A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?

   A. Supply-side economics
   B. neo-Keynesian economists
   C. rational-expectations economists.
   D. new classical economists.

2. A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?

   A. supply side economists
   B. neo-Keynesian economists
   C. rational -expectations economists
   D. New classical economists

3. Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?

   A. None of these answers
   B. Disagree because they have different scientific judgments
   C. really don’t disagree at all. It just appears that they disagree
   D. disagree because they have different values

4. Suppose two economists are arguing about policies that deal with unemployment One economist says the government should fight unemployment because it is the greatest social evil The other economist response Nonsense Inflation is the greatest social evil These economists ?

   A. really don’t disagree at all It just appears that they disagree.
   B. disagree because they have different values.
   C. none of these answers.
   D. disagree because they have different scientific judgments.

5. Micheal Roemer’s three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors’ growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?

   A. I and III only
   B. II and III only
   C. I, II and III only
   D. I, II , III only IV

6. When economists say that people act rationally in their self interest, they mean that individuals _______?

   A. look for and pursue opportunities to increase their utility
   B. generally disregard the interests of others
   C. are mainly creatures of habit
   D. are unpredictable

   Submitted by: Mansoor Ul Haque

7. By controlling the monetary base economists mean ?

   A. making banks keep a certain % of their assets as M0
   B. controlling the money multiplier
   C. restricting the amount of cash in circulation
   D. not allowing commercial banks to issue notes and coins

8. When economists talk about developing countries experiencing flight of capital they mean?

   A. money lent to the country being immediately invested abroad
   B. People investing their money in urban business rather than agriculture
   C. money moving around financial institutions rather than being invested in production
   D. people investing money abroad rather than in their own country

9. If banks and the private sector decide to hold less cash the money multiplier will be ?

   A. Unchanged
   B. Larger
   C. Smaller
   D. Unstable

10. Which of the following is not a public policy to promote the private sector ?

    A. Investigating development potential through scientific and market research and natural resources surveys
    B. Providing adequate infrastructure for public and private agencies
    C. Creating markets, including commodity markets, security exchanges, banks credit facilities and insurance companies
    D. Increasing market monopolies and oligopolies to help producers