There is a deadweight loss if a natural monopoly is regulated to use
A) marginal cost pricing and if it is regulated to use average cost pricing.
B) average cost pricing and if it is allowed to be unregulated and maximize its profit.
C) marginal cost pricing and if it is allowed to be unregulated and maximize its profit.
D) None of the above answers is correct.
B
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A rightward shift of the aggregate demand curve leads to
A) an upward movement along the short-run Phillips curve. B) neither a movement along nor a shift in the short-run Phillips curve. C) a downward movement along the short-run Phillips curve. D) a leftward shift of the short-run Phillips curve. E) a rightward shift of the short-run Phillips curve.
Which of the following is likely to cause a right shift in the supply curve for labor?
A) An increase in the population B) A decrease in the population C) An increase in the price of the final good that the workers produce D) A decrease in the price of the final good that the labor is used to produce
By definition, when the economy is in equilibrium it must be true that
A) leakages equal injections. B) saving equals investment. C) government spending equals taxes. D) exports equal imports.
Which of the following is an example of a positive statement?
a. Workers with families should be paid at least the minimum wage. b. If crime rates were reduced, the world would be a better place in which to live. c. Marginal tax rates should be reduced for individuals in the highest tax brackets. d. An increase in the price of gasoline will cause a reduction in the amount purchased. e. Corrupt politicians ought to be voted out of office.