The government is undertaking a policy to deal with a monopoly. As a result, the monopoly's ATC curve is shifting upward. Most likely, which of the following policies is being used?
a. antitrust action
b. a regulatory commission sets a fair price
c. a regulatory commission sets a price equal to marginal cost
d. laissez-faire
e. encouraging concentration
B
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For a household, the opportunity cost of not working is the
A) price level. B) nominal wage rate. C) demand for labor. D) cost of living. E) real wage rate.
The substitution effect of a decrease in the price of an inferior good encourages the consumer to purchase more of the good while the income effect encourages the consumer to purchase less of it
a. True b. False
Which of the following is inaccurate:
a. The monetary base rises only if the central bank's assets rise. b. The monetary base rises if the central bank lowers the reserve ratio. c. An increase in government spending does not affect the monetary base. d. Foreign exchange transactions between domestic and foreign banks do not affect a nation's monetary base.
Exclusion of a relevant variable from a multiple linear regression model leads to the problem of _____.
A. misspecification of the model B. multicollinearity C. perfect collinearity D. homoskedasticity