One problem with cost-plus regulation is that:
A. government ownership is often inefficient.
B. consumers would be willing to pay more for higher quality goods.
C. it blunts regulated firms' incentives to cut costs.
D. there is no way for a regulated firm's owners to recoup their opportunity costs.
Answer: C
You might also like to view...
When television commentators refer to "tax and spend" policy, they are referring to
A) monetary policy. B) the Federal Reserve policy. C) automatic stabilizers. D) fiscal policy.
"Dumping" refers to
A) the sale of goods abroad at a price below their cost and below the price charged in the domestic market. B) unloading of foreign goods on domestic docks. C) government actions to remedy "unfair" trade practices. D) buying goods at low prices in foreign countries and selling them at high prices in the United States.
In 2016 the U.S. dollar was involved in 88 percent of all foreign exchange transactions.
Answer the following statement true (T) or false (F)
Which of the following would not be included in M1?
A. money market accounts B. checking accounts C. demand deposits D. traveler's checks