If competition decreases in a certain industry

Select one:

a. it would not matter because competition has very little affect in a market economy.

b. A company that is in that industry may have and exert more economic power.

c. Resources will be allocated more efficiently

d. Prices will most likely be lower in that industry

Question 2

Question text

The Sherman Anti-Trust Act

Select one:

a. Gave monopolies a legal right to exist and grow

b. Gave all unions money to pay their members

c. Was a governmental attempt to promote and encourage competition.

d. Created new policies to ensure that workers' compensation was given to all workers

Question 3

Question text

One reason the government is involved in the U.S. economy is to

Select one:

a. regulate industries in which a monopoly is in the public interest

b. encourage monopolies

c. discourage competition

d. promote the development of negative externalities

Question 4

Question text

Under perfect competition

Select one:

a. The buyers are usually uninformed

b. Market equilibrium sets the price of goods and services

c. The government determines how much of a good to produce.

d. The seller tends to spend much effort in advertising its product because of product differentiation.

Question 5

Question text

The Clayton-Anti Trust Act

Select one:

a. Was never passed

b. Helped monopolists grow wealthier

c. Was passed to lower the taxes on the most wealthy Americans

d. Outlawed price discrimination

1. The language of price controls Suppose that, in a competitive market without government regulations, the equilibrium price of donuts is $1.50 each. Complete the following table by indicating whether each of the statements is an example of a price celling or a price floor and whether it is binding or nonbinding. Statement Price Control Binding or Not Due to new regulations, donut shops that would like to pay better wages in order to hire more workers are prohibited from doing so. The government prohibits donut shops from selling donuts for more than $1.80 each. The government has instituted a legal minimum price of $1.80 each for donuts.34. Punitive damages can well exceed actual damages. 36 Fred bumps into a person at the airport and says "Yes!" as a consequence. He is likely liable in tort-battery, but not in criminal law. 37. Fred did all he could to keep debris off of the floor of his mom-and-pop. Mergatroid was shopping for bananas and slipped on one which was on the floor. Mergatroid can likely win if she were to sue. 38. Battery is similar to trespass. 39 Consent negates battery as well as assault. 40. "He never saw it coming" is likely a report of an assault, but not a battery. 41. Fred took Melba on a date. When they got to the restaurant, his passenger door was stuck and she could not get out. Melba has been falsely imprisoned. 42 A negligent tort is likely to be a crime as well. 43. Jake takes Fred's bike without permission. This is trespass, but on these facts, likely not conversion. 44. THE reasonable prudent person in the same or similar circumstances is the tort measure for behavior in fort, whether it be the behavior of an individual or organization. 45. Slander is written defamation whereas libel is spoken defamation. In order to get a verdict in any case in defamation, one must prove damages. 46. A public figure can get an award in defamation more easily than can a nonpublic figure. 47 Sam hit Fred's car in traffic. $300 damages to Fred's car. $300 damages to Sam's car. Fred was 10% at fault. If comparative negligence used Fred gets $250.00. If contributory negligence is used, Fred gets $300. 48 Fred was a skydiver and was hired to do a dive at a county fair. As he was making the dive, wind drove him over into Farmer Mel's field where Fred landed. Fred is a Trespasser. If Fred had landed but did not know it was Farmer Mel's field, Fred would not be a trespasser. "No Trespassing" signs turn a criminal act into a civil act. 49 Nuisance is the invasion of one's exclusive right to posses. 50. Fred's pet, Grump the Miniature Tiger was not so friendly. Standing only & inches tall at the shoulders, Grump bit anyone he could find, except Fred. (Grump is not so dumb. ) Fred kept a close eye on Grump and was not negligent when Grump got out and bit Jake. Fred will not be liable as he was not negligent. End.If the coupon had been delivered, the neighbor would have won a giant sweepstakes. The neighbor has actual cause against the boss, Fred, Penelope, the gardener, and the mailman. On this basis. the neighbor has a good case. 19 Clem is from a hard living family and he eats nails for breakfast. After one especially large breakfast of nails, he became sick and so missed work. Clem wants to sue the nail company. Assumption of the risk might be a defense available to the company. 20 A person who is injured while a passanger in a taxi cab might have a strict liability cause of action. 21. One of Zeke's rentors was late in paying rent. Wondering if the renter had moved out. Zeke went to the house looked in through one of the windows. Zeke saw furniture and other items, but no renter. Assuming the rentor had moved out, Zeke went inside to see if there was anything of marketable value which could be used as a rent payment. He found several items which he began taking out of the house. Just then, the renter came to the house. Zeke has committed the torts of burglary, larceny, trespass, and embezzlement. 22. Martha and Ben were Las Vegas stars who had a wild animal act. One of the animals was Martha's beloved Leonardo the Lion. Leo was a loving mammal who had never shown any tendency towards hostility of any kind. One day while doing the show, Ben's knee buckled and he fell suddenly to the stage floor. This happened in front of Leo, who became immediately concerned and with a big paw tried to grab Ben to help him. Ben was severely injured by Leo's attempt to help. Martha is liable in strict liability. 23. A tort is a civil wrong litigated, if necessary, in civil court. 24. An act which gives rise to a tort action can also be a crime. 25. "Duty" in tort is a responsibility to act or not act that one person owes to another., 26. A physician owes a duty to help everyone he/she can. 27. Fred was a physician who was in a hurry and so did not stop to help a stranger in a medical emergency. Fred breached his legal duty to help. 28. In another instance, Fred stopped to help, but he was negligent in the medical treatment provided. Fred breached his duty to help. 29 The stranger was permanently injured after Fred's help. It is a fact that Fred breached his duty to the stranger which caused damages. Fred is liable in law to the stranger. 30. For every crime there is a civil wrong. For every civil wrong, there is not necessarily a crime. 31. In tort. it is true that duty, breach, causation (both actual and proximate), and damages must happen in order for there to be a tort. 32. Fred's boss was in bad humor because Jake hit his car, and ended up unreasonably yelling at Fred at work. Fred, now upset, was mad when he went home, slamming his front door when he entered. The door knob broke off. beaning Rofo. Fred's dog. This gave Rofo a bad attitude who then growled at the mailman as he delivered the mail. The mailman, now flustered, fails to deliver mail to Fred's next door neighbor, Mergatroid. In that mail was the winning envelope for a 1 million dollar drawing prize. Melba found out after the due date for responding. Melba can sue all of the people named under the theory of proximate cause. 33. The court looks at the amount of damages in determining the importance of a given case.1. The language of price controls Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon. Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding. Statement Price Control Binding or Not Due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from doing so. The government has instituted a legal minimum price of $2.70 per gallon for gasoline. The government prohibits gas stations from selling gasoline for more than $3.40 per gallon.Problem 2: 15 points = [5 + 5 + 5] Consider a birth-and-death process, X - {X(t) : t 2 0}, with instant rates Xx = A and uk = / per hour. You are given information about the expected departure times from states 0 and 1 as follows. . E [So |X(0) = 0] = 1 hour . E[Si |X(0) = 1] = 12 minutes 1. Determine parameters A and / 2. Derive the limiting distribution, A = lim P[X(() - *] for any * 2 0 3. Find the limiting expectation, lim E[X(t)] Solution