State and federal regulators retain the authority to set or approve public utilities' prices. An important prerequisite for this role is to know the utility's:
A. true cost function.
B. price in other economies.
C. income elasticity of demand.
D. price elasticity of supply.
Answer: A
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If the government increased the income tax on the rich and increased transfer payments to the poor, the most likely result would be
a. to increase investment in the economy b. the eradication of poverty c. a rise in the Gini coefficient d. an increase in the economy's rate of economic growth e. a decline in the economy's rate of economic growth
In the private sector, all transactions are voluntary, so
A. individuals are required to participate. B. there are always winners and losers. C. presumably all parties benefit. D. often too few transactions will take place.
The infant-industry argument for tariff protection is that tariffs should be imposed to protect from competition
A) industries that are essential if a country is to become an industrial nation. B) industries needed for national defense. C) industries that cannot compete with foreign competitors at this point in time, but will be able to once they gain some size and experience. D) industries that can compete with foreign competitors at this point in time and are deemed essential by the government.
Since the mid-1980s, tariff rates in most nations have risen
Indicate whether the statement is true or false