A large U.S. steel firm wants to restrict imports of Japanese steel, but Ford Motor Company wants ...

A large U.S. steel firm wants to restrict imports of Japanese steel, but Ford Motor Company wants fewer restrictions on steel so that the price of steel will go down. This can best be described as
 a. a zero-sum game
  b. a competing-interest situation
  c. a special-interest situation
  d. a situation without widespread costs and benefits
  e. an argument over distribution of a public good

QUESTION 2

The video rental market can be described as a monopolistically competitive market. As a result of the economic profit earned by the first video rental outlets,
 a. existing firms were able to successfully lobby the government for patent protection
  b. competitors were attracted to the industry, and their entry reduced economic profit
  c. demand dried up
  d. Blockbuster saw an opportunity to take over the industry
  e. competitors were discouraged from entering the industry

QUESTION 3

Special-interest legislation usually
 a. has widespread benefits and costs
  b. has concentrated benefits and costs
  c. has concentrated benefits but widespread costs
  d. concerns the provision of public goods
  e. concerns the provision of private goods

QUESTION 4

In the short-run, firms in a monopolistically competitive market will earn zero economic profit.
 a. True
  b. False

QUESTION 5

Special-interest legislation is legislation where there are both widespread costs and benefits.
 a. True
  b. False

QUESTION 6

Suppose that firms in a monopolistically competitive industry are earning short-run economic profits. In the long run, the demand curve facing each individual firm can be expected to
 a. shift to the left and become flatter
  b. shift to the left and become steeper
  c. shift to the right and become flatter
  d. shift to the right and become steeper
  e. remain constant

QUESTION 7

Legislation that benefits many individuals at the expense of a few is a natural outcome of representative democracy.
 a. True
  b. False

QUESTION 8

In the long run, a monopolistically competitive firm will find
 a. its demand curve shifting until price equals average total cost
  b. its cost curve shifting until price equals average total cost
  c. its demand curve shifting until marginal revenue equals marginal cost
  d. its cost curve shifting until marginal revenue equals marginal cost
  e. no changes in its demand or cost curves if it is earning an economic profit