Question

Q1. During the last decades, in the United States, union membership went down. Today, approximately________ % of workers of private companies are members of unions.

1. 29

2. 19

3. 11

4. 7

Q.2 Command-and-control regulations were able to reduce pollution; however, they have shortcomings. Which one of the following four answers represents one of these shortcomings?

1. They provide incentives for a firm to go beyond the pollution limits set by the government.

2. They specify how much pollution can be emitted.

3. They often have politically motivated loopholes.

4. They can specify what type of pollution-control technologies must be used.

Q3. According to economists, television programs are considered nonrival when

Group of answer choices

the market suffers from inefficiently low consumption.

more than one person can consume the same unit of the good at the same time.

individuals ignore the effect of their use on the amount of the resource remaining for others.

the supplier cannot prevent consumption by people who do not pay for it.

Q4. In a market economy cost-plus regulation causes a challenge to the regulators. One of the following answers best represents this difficulty. Which answers is that?

Group of answer choices

Producers have less reason to be concerned with high costs because they can pass them along to the consumer in the form of higher prices.

When a set-price declines slightly over time and the market changes dramatically, the firm can experience a great loss of revenue.

If a large firm is divided into smaller firms, the cost of production would increase and the economy would become less efficient as a whole.

The two firms may discover subtle ways of coordinating their behavior and keeping prices high.

Answer 1

1) 7

( As per the new estimates, 6.2 percent of the employees in private companies are members of a union. So, from the given options, most feasible one is 7)

2) They often have politically motivated loop holes.

( Command and control regulations are formed by legislators who are interested in fulfilling their own political aspirations.So, the regulations may prove to be beneficial or detrimental to corporate giants based on the political scenario. The regulations in general, are subjected to compromises in the political process.)

Note: They don't provide incentives to go beyond limits. Its actually a short coming. But here, its said that they do. So its not presented in the form of a shortcoming.other wise, it would have been the best answer

3)More than one person can consume the same unit of good at the same time.

( Non rivalry is a characteristic of a public good. A good is non-rival if the consumption by one person doesn't prevent the consumption of another person. In the case of TV a program, its non rival if one person's viewing of the channel doesn't prevent another person's ability to view the program on the Same channel.)

4) Producers have less reason to be concerned with high costs because they can pass them along to the consumer in the form of higher prices.

( cost -plus regulation refers to the government regulation of a firm which sets the price that a firm can charge over a period by looking at the firm's accounting costs and then adding a normal profit. Thus, its convenient for the firms to transfer their costs in the form of prices to the consumers. If a costs of a firm increases, then price of its product will rise. If costs of a firm decreases, then price will be reduced.)