Which of the following is not a regulatory option when the government is trying to prevent market failure in the case of a natural monopoly?
A. Output regulation.
B. Cost regulation.
C. Price regulation.
D. Profit regulation.
Answer: B
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The amount of revenues that sellers actually receive over and above the minimum acceptable amount that they are willing to receive for selling a product is called
A. production costs. B. producers' supply. C. consumer surplus. D. producer surplus.
Political creative destruction is likely to be opposed:
A) equally in all types of economies. B) more in a market economy than in a command economy. C) more in an economy with inclusive institutions than in an economy with extractive institutions. D) less in an economy with inclusive institutions than in an economy with extractive institutions.
In the long run, persistent inflation in the United States is caused by
A) leftward shifts in both the long-run aggregate supply curve and in the aggregate demand curve. B) rightward shifts in the long-run aggregate supply curve and the leftward shift of the aggregate demand curve. C) a faster rightward shift of the aggregate demand curve than the rightward shift of the long-run aggregate supply curve. D) leftward shifts in the aggregate demand curve while the position of the long-run supply curve is unchanged.
Bill can cook dinner in 45 minutes and mow the lawn in 1.5 hours. Eileen can cook dinner in 1.5 hours and mow the lawn in 2 hours. Which of the following statements is correct?
a. Bill has both an absolute advantage and a comparative advantage in cooking dinner. b. Bill has both an absolute advantage and a comparative advantage in mowing the lawn. c. Eileen has both an absolute advantage and a comparative advantage in cooking dinner. d. Eileen has both an absolute advantage and a comparative advantage in mowing the lawn. e. Bill has the comparative advantage in both cooking dinner and mowing the lawn.