If an unintended increase in business inventories occurs:
A. we can expect aggregate production to be unaffected.
B. we can expect businesses to increase the level of production.
C. we can expect businesses to lower the level of production.
D. aggregate expenditures must exceed the domestic output.
C. we can expect businesses to lower the level of production.
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In Portney's analysis of the 1990 Clean Air Act Amendments (CAAA), his estimates suggest that
a. more resources should be allocated to air quality control b. the associated MSB exceed the MSC c. society would be better off with less regulation of air quality d. the TSC outweigh the TSB
Managers of a natural monopoly regulated using rate of return regulation have an incentive to
A) exaggerate the firm's costs. B) underestimate the firm's costs. C) minimize the monopoly's deadweight loss. D) make zero economic profit. E) exaggerate the firm's profit.
The civil court system often relies upon
A. a judge and jury to resolve financial disputes among injured parties. B. attorneys who volunteer to defend the indigent accused of crimes. C. police enforcement of criminal statutes. D. a sentence of jail time as punishment.
Financial intermediaries reduce search and information costs.
Answer the following statement true (T) or false (F)