In the above figure, if this natural monopolist were regulated and allowed to earn a "fair" rate of return, it would produce
A) at Q1 output rate.
B) at Q2 output rate.
C) at Q3 output rate.
D) past the Q3 output rate.
B
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In the above figure, saving will equal zero when real disposable income equals
A) 500. B) 600. C) 60. D) 0.
The functions of money are
A) medium of exchange, unit of account, and store of value. B) medium of exchange, the ability to buy goods and services, and the ability to pay off debts. C) medium of exchange, the ability to buy goods and services, and checking accounts. D) credit cards, checking accounts, currency, and coins. E) store of value, use as a barter mechanism, and unit of account.
Raising taxes on interest and dividend income will increase the level of investment and economic growth
Indicate whether the statement is true or false
The claim that inflation is necessary for development is based on the idea that
a. rapidly rising demand is necessary to spur productive activity b. the problems brought on by inflation will attract foreign aid c. the process of structural change naturally forces prices up in some sectors, while other sectors'prices do not fall d. higher prices will force people to work harder e. none of the above