Question

(1)At its creation, the Interstate Commerce Commission (ICC) demonstrated:

Group of answer choices

Condarcet's Paradox

market failure

Arrow's Impossibility Theorem

quid pro quo

regulatory capture

(2)Which of the following would be considered as a "new wave regulation" ?

Group of answer choices

national defense spending

Occupational Safety & Hazards Administration (OSHA) enforcement of workplace standards

None of the answers listed here

court ordered break up of a Microsoft monopoly

public funding of community education programs

(3)A pure public good is ______________ & _______________ in consumption. In order to determine the market demand for a public good, one must perform a _____________ summation of individuals' demand curves for the good.

Group of answer choices

non-exclusive ; non-rival ; horizontal

exclusive ; rival ; vertical

non-exclusive ; non-rival ; vertical

exclusive ; rival ; horizontal

(4)Suppose that American Airlines offers a flight schedule that closely resembles the flight schedule offered by Delta Airlines. Which of the following is most relevant ?

Group of answer choices

private regulation

antitrust

contestable market theory

Hotelling's Law

Coase theorem

(5)Suppose Wegofurst must choose among strategies: A, B, & C
- while Thenweego must then choose among strategies: X, Y, & Z.
Assuming no collusion, what is the Nash equilibrium ?
                
AX 15,9      AY 6,8      AZ 7,10
BX 4,19      BY 10,7    BZ 13,15
CX 13,8      CY 30,2    CZ 8,10

Group of answer choices

BZ

BX

AY

CY

AX

CX

CZ

AZ

BY

Answer 1

1. Option B Market Failure

Because of failure of buyers and sellers to transact business in railroad the government formed Interstate Commerce Commission (ICC) to regulate the Business

2.Option B OSHA

The new wave regulation as followed by OSHA aims at the compliance with the health and safety standards of workers to be followed strictly at work place are different from traditional standards.

3.Option C non-exclusive ; non-rival ; vertical

Individual demand curves for public goods are summed vertically to get the market demand curve. As a result, the market demand curve for public goods gives the price society is willing to pay for a given quantity.The two characteristics of public goods are non-rivalry and non-excludability. Non-rivalry means that the consumption of the good by one consumer does not decrease the availability of the good to other consumers.

4.Option A Private Regulation

The variety of private regulatory schemes in place is remarkable, encompassing i.e. common rules, memorandums of understanding, regulatory contracts, codes of conduct and voluntary agreements by which economic actors, social players, NGOs and organized groups establish themselves voluntarily to regulate and organize .