In Many Cases Throughout Canadian History,governments Have Sought to Control

question 10

Multiple Choice

In many cases throughout Canadian history,governments have sought to control the behaviour of oligopolistic firms through either ownership or regulation.Policymakers are now skeptical of such practices because
1) many innovations in products and production methods that have led to increases in living standards are attributable to firms in oligopolistic industries;
2) it became clear that oligopolistic industries can achieve both productive and allocative efficiency without government intervention;
3) the regulatory body often ends up protecting the firms from competition.

• A)1 only
• B)2 only
• C)3 only
• D)1 and 2
• E)1 and 3

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Definitions:

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares, rather than cash.

Retained Earnings

The portion of a company's profits that is held or retained and not paid out as dividends to shareholders.

Shareholder Wealth

The overall value for shareholders; it is often measured by the share price of a company multiplied by the number of shares outstanding.