Economists have said that deregulation of the electric utility industry might lead to increased prices in the short run, but prices will fall in the long run. In this context:
a. the short run means the middle of next year.
b. the short run means the period after all adjustments have been made, and the quantities of all resources have been varied as necessary.
c. the long run means after all adjustments have been made, the quantities of all resources have been varied as necessary, and new market entrants begin producing electricity.
d. the short run means the period after new firms begin producing electricity.
e. the long run means approximately ten years.
c
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In the loanable funds market, which of the following is an example of investment demand?
A) Mark buying rare gold coins B) Scott purchasing a rookie-year baseball card for last year's World Series MVP C) Mary buying stocks for her retirement portfolio D) Brian, owner of Bryan Games, purchasing computers to enhance the production of games E) George purchasing United States savings bonds for his son's college fund
Which of the following would most likely NOT be included in the liquidity approach to defining the money supply?
A) savings deposits B) money market mutual fund accounts C) corporate bonds D) traveler's checks
The problem caused when people are often reluctant to voluntarily pay for goods and services that provide benefits for everyone, even for those who don't pay is called the:
A. drop in the bucket hypothesis. B. rational ignorance problem. C. moral hazard problem. D. free-rider problem.
Compared to the rest of the industrial world, the United States' tax revenues
a. as a percent of GDP is the lowest b. as a percent of GDP ranks among the highest c. as a percent of GDP ranks among the lowest d. as a percent of GDP is the highest e. is the lowest