Today, you might be buying from a regulated natural monopoly when you purchase
A) a car, a truck, or a bicycle.
B) a computer, a phone, or a camera.
C) natural gas or electricity.
D) a house, a condominium, or a plot of land.
E) food in a grocery store or in a restaurant.
C
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The Solow residual attempts to measure the amount of output not explained by
A) technological progress. B) the direct contribution of labor and capital. C) economic projections. D) the amount of a nation's human capital.
If the production of a good creates large spillover benefits on others, the government might correct for the:
a. overallocation of resources to its production by subsidizing it b. overallocation of resources to its production by imposing a tax on it. c. underallocation of resources to its production by subsidizing it. d. underallocation of resources to its production by imposing a tax on it.
How would budget deficit reduction through reduced government spending affect economic growth?
a. It would not affect economic growth because the budget deficit and economic growth are unrelated. b. It would stimulate economic growth. c. It would hinder economic growth. d. It would not affect economic growth because the positive and negative effects of deficit reduction would cancel each other out. e. It depends on which government programs are cut to achieve deficit reduction.
The consumer optimum for consuming two goods is achieved when
A. the marginal utility per last dollar spent is equal for the two goods. B. the total utility from each good is equal. C. the price multiplied by the marginal utility is equal for the two goods. D. the price of each good is equal.