Question

1. What is not a limitation of antitrust legislation?
   a.   Anticompetitive behavior may resemble vigorous competition.
   b.   The defendant may go bankrupt.
   c.   The government seldom wins.
   d.   It prevents firms from challenging their rivals.

2. The most threatening and damaging detrimental externality at issue today is
   a.   the continued pollution of city air due to factory emissions.
   b.   the explosion and oil spill at the Deepwater Horizon.
   c.   water shortages.
   d.   global warming.

3. Economic theory posits that a resource that is finite and being depleted will rise in price continuously and demand will be reduced. In fact, a recent study, graphing the price behavior of lead, zinc, and copper found that until about 2007,
   a.   prices rose steadily, as predicted.
   b.   prices were up and down with no discernible pattern.
   c.   prices remained remarkably stable.
   d.   prices dropped precipitously.

4. The legal system imposes large financial penalties on firms caught violating Environmental Protection Agency guidelines. The EPA’s standards program is thus an example of a
   a.   system of emissions taxes.
   b.   system of emissions permits.
   c.   market-based approach to reducing pollution.
   d.   direct-control system enforced through the courts.

5. Which of the following is not a public good?
   a.   The latest Walt Disney movie
   b.   A flood-control levee
   c.   A coastal lighthouse
   d.   National defense

Answer 1

Ans :- 1. a) Anticompetitive behavior may resemble vigorous competition.

This law was designed for the economic growth and for business competition. Because economy only grow when, then business industry run fast. So this theory believe Anticimpetitive behavior creat strong competition.

And it is not a limitation.

Ans :- 2. D) Global warming.

it is the only external damaging issue that are rise day day in the world , in this natural temperature rises, climate condintion change day to day.

Ans :- 3. A) prices rose steaddily, as prediced.

As you know peeiod of 2007 to 2008 is the great recession. this recession's major effect on north America , south America and European countries, so prices rose's in this region. In this period U.S. economy also decreses.

Ans :- 4. D) direct-control system enforced through the courts.

​​​​​​As we know EPA is enact to protect environment. when so one not follow they will be punisable as huge penalty and/or jail by court.

Ans:- 5. A) The latest Walt Disney movie.

In public , those good & services that are given to public without any earn profit making think.

In this Only walt diseny movie is making for profit. so it is Not a public good , because it is not fullfill the condition.