Suppose that a regulatory agency helps producers maximize economic profit. This type of regulation coincides with
A) a natural monopoly.
B) a marginal cost pricing rule.
C) an average cost pricing rule.
D) the capture theory of regulation.
E) the social interest theory of regulation.
D
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If the above figure illustrated a perfectly competitive industry, the equilibrium market price would be equal to
A) $4. B) $7. C) $9. D) $11.
A ___________is a government payment to an individual, business, or other group to encourage or protect a certain type of economic activity.
Fill in the blank(s) with the appropriate word(s).
If net taxes paid by households increase:
A. transfer payments to households will decrease. B. private saving will decrease. C. private saving will increase. D. public saving will decrease.
What advantages does monetary policy have over fiscal policy?
What will be an ideal response?