Which of the Following Is Correct

question 5

Multiple Choice

Which of the following is correct?

• A) In a competitive market, the firm will bear the costs of a legislated increase in safety regulations.
• B) In a competitive market, imposing safety regulation is easy since all firms will adopt it right away due to the market competition.
• C) In a competitive market, a legislated increase in safety will drive some firms out of the business.
• D) In a competitive market, the application of uniform safety standard will not help weed out the firms that have low safety technologies.
• E) In a competitive market, a legislated increase in safety will make people better off.

---

Definitions:

Monetarists

Economists who believe that the money supply is the main determinant of economic growth and control over inflation.

Quantity Theory

A theory in economics that describes the relationship between the quantity of money in an economy and the level of prices of goods and services.

Quantity Theory

The theory suggesting that the amount of money in circulation in an economy directly affects price levels and inflation.

Doubled

A term indicating that a quantity, value, or size has increased by 100 percent, resulting in its multiplication by two.