Why does govt persist in imposing regulations on industries

Assignment Help Macroeconomics

Reference no: EM13200857

A. Economic Theory tells us that regulation is inherently inefficient as compared to free markets. Why then does the government persist in imposing regulations on various industries?

B. In light of the inefficiency issue, should the Federal government insist on reforming the regulations on the financial industry currently in place? Why?

C. A story in the WSJ not too long ago suggested that the Justice Department might file legal actions against a number of large oil companies because there is evidence that they shared salary information on their professional and technical staff and agreed not to hire each other's employees. Should this be considered a violation of antitrust law? Why?

D. Multinational firms must now deal with regulations within various national borders and within the limits of regional trading blocs such as the EU and NAFTA. Is it likely that the WTO will ever be able to standardize such regulations? Explain.

E. In recent years courts within the U.S. have tended to follow the "rule of reason" approach in deciding antitrust cases as opposed to the "per se rule." Explain the difference between the two approaches. Which of the two do you favor? Why?

Reference no: EM13200857

Questions Cloud

State the stopping distance of a car after the brakes : the stopping distance of a car after the brakes are applied varies directly as the square of the speed r. If a car traveling 30 mph can stop in 50 ft, how many feet will it take the same car to stop when it is traveling 70 mph?

Write the revenue as function of x : the manager of 100 apartments knows that at $600 rent per month, all apartments will be rented. For each $25 increase, one apartment will not be occupied. Let x represnt the number of $25 increases to the rent. Write the revenue as function of x.

Estimate the average annual inflation rate : Estimate the expected real rate of return on the ten year U. S. Treasury bond - estimate the average annual inflation rate expected by investors over the life of the thirty year bond.

What radial and height dimensions will require : a metal storage tank with a maximum value of 1200 m^3, is to be constructed in the shape of a right circular cylinder surmounted by a hemisphere. What radial and height dimensions will require the least amount of material?

Why does govt persist in imposing regulations on industries : A story in the WSJ not too long ago suggested that the Justice Department might file legal actions against a number of large oil companies because there is evidence that they shared salary information on their professional.

To determine average total cost increases or decreases : Suppose you produce one more pair at a marginal cost of $20. If you do produce that fifth pair of shoe, what will your average total cost be. has your average total cost increased or decrease. why.

What is the measure of angle abd : What is the measure of angle ABD if the measure of angle ABD is represented by 4x, the measure of angle DBC is represented by 3x and the measure of angle ABC is 77 degrees?

What is the value of the automobile : The value of an car after t years is given by the function V(t)=25,000-1500t. What is the value of the automobile 3 years after it is purchased?

Find out the number of bedroom sets and living room : If a bedroom set sells for $10,000 and a living room set sells for $18,000, determine the number of bedroom sets and living room

User Account

All Pages