Answer to Question #141746 in Macroeconomics for inderjeet singh ahluwalia

Question

The Canadian government built and runs the National Gallery of Canada in Ottawa. Admission to the museum is free of charge. We can conclude that…

a.

Special interests engaged in rent-seeking behaviour.

b.

There is a principal-agent problem.

c.

Private enterprise wouldn’t have provided the free service.

d.

There is regulatory capture.

In the Fall of 2015, Iranian GDP declined. What was the most important factor?

a.

Iranian consumers organized on social media to boycott buying domestically produced cars.

b.

Iran signed a free-trade deal with Russia.

c.

Economic sanctions were to be lifted starting in 2016 after Iran agreed not to produce nukes.

d.

The price of oil fell.

Answer 1

d. There is regulatory capture.

d. The price of oil fell.