Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price
A) P5 and sell Q1 units.
B) P2 and sell Q1 units.
C) P3 and sell Q3 units.
D) P1 and sell Q4 units.
D
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If the social cost of producing a good exceeds the private cost,
A) a negative externality exists. B) no externalities exist. C) a positive externality exists. D) the market is efficient.
Which of the following would cause the unemployment rate as measured by the Bureau of Labor Statistics to overstate the true degree of joblessness in the economy?
A) discouraged workers B) unemployed persons who falsely report themselves as actively looking for a job C) retired people who have no intention of returning to work D) people with part-time jobs who would prefer to be working full time
Which of the following is not based on the benefits-received principle of taxation?
a. charging a fee for use of public golf courses b. differences between residential and out-of-state college tuition c. the excise tax on gasoline d. toll booths on a highway e. charging a fee per bag to haul away garbage
Suppose a bank has $200,000 in deposits, a required reserve ratio of 15 percent, and total reserves of $100,000. Then it has excess reserves of
A. $30,000. B. Negative $100,000. C. $200,000. D. $70,000.