1.) Would auctioning broadcast licenses be more efficient than having the Federal Communications Commission (FCC) assign licenses on basis designed by the FCC? Explain.
2.) Which of the three types of government policies- antitrust, social regulation, or economic regulation- is the basis for each of the following? Who benefits from the policy?
a.) Beautician education standards
b.) Certified public accounting requirements
c.) Liquor licensing
d.) Justice Department Guidelines
e.) The Clean Air Act
f.) The nutrition and labeling act
3.) "The Japanese or Chinese or Koreans or others, are beating us at every step. We must act as they do. We must allow and encourage cooperation among firms, and we must develop partnerships between business and government." Evaluate this argument.
4.) "The government should not be the sole provider of a good or service unless there is a compelling reason." What compelling reason? Would you agree that issuing drivers' licenses must be left to the government?
5.) What is a natural monopoly? Can you think of an example of a natural monopoly? If you can, explain why you consider it a natural monopoly.