In theory, placing a price control on a natural monopoly should:
A. have the same outcome as public ownership.
B. create negative economic profits for the company.
C. reduce deadweight loss to zero.
D. be easy for government to figure out because of easily accessible information.
A. have the same outcome as public ownership.
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Failing to be fully informed may be efficient if information
A) is free. B) is scarce. C) is subject to increasing returns. D) has no opportunity cost of production.
Money in the United States today includes _______
A. currency and deposits at both banks and the Fed B. the currency in people's wallets, stores' tills, and the bank deposits that people and businesses own C. currency in ATMs and people's bank deposits D. the banks' reserves and bank deposits owned by individuals and businesses
The increase in government spending on unemployment insurance payments to workers who lose their jobs during a recession and the decrease in government spending on unemployment insurance payments to workers during an expansion is an example of
A) discretionary monetary policy. B) automatic stabilizers. C) automatic monetary policy. D) discretionary fiscal policy.
A financial contract in which a bank agrees to sell the expected future returns from an underlying bank loan to a third party is referred to as:
A) loan sale B) loan commitment C) credit rationing D) microlending