18. "Industry concentration" A. means that there are a large number of small firms in the industry B. means that there are a small number of large firms in the industry C. leads to lower prices in the industry D. leads to economies of scale in production
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29. |
If regulations create barriers to entry in an industry, the result can be _____. |
| Ā |
a. efficiency |
| Ā |
b. monopoly |
| Ā |
c. monopsony |
| Ā |
d. higher output |
| Ā | Ā |
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30. |
Government price setting _____. |
| Ā |
a. prevents firms from lowering their prices |
| Ā |
b. creates barriers to entry |
| Ā |
c. helps enforce collusion among industry members |
| Ā |
d. all of the above |
Ā
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31. |
Farmers receive a relative large amount of transfers per capita because _____. |
| Ā |
a. farming is in decline |
| Ā |
b. there are more farmers than any other interest group |
| Ā |
c. agriculture is a national priority |
| Ā |
d. farming is the dominant industry in most rural Congressional districts |
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32. |
The free rider problem _____. |
| Ā |
a. leads to an understatement of demand for the good in question |
| Ā |
b. is beneficial because it leads to lower public spending |
| Ā |
c. is functionally equivalent to the transitional gains trap |
| Ā |
d. is more prevalent in small groups |
| Ā |
