The two alternative ways of promoting better outcomes when a natural monopoly exists are:
A. Subsidy and taxation
B. Public ownership and regulation
C. Pricing and incorporation
D. Breaking and merging
B. Public ownership and regulation
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The Fed's low short-term interest rate policy from 2002-2004, along with housing regulations promoting low down-payment loans to sub-prime borrowers, encouraged
a. conventional 30-year, fixed rate mortgages which have relatively high default and foreclosure rates. b. conventional 30-year, fixed rate mortgages which have relatively low default and foreclosure rates. c. adjustable rate mortgages which have relatively low default and foreclosure rates. d. adjustable rate mortgages which have relatively high default and foreclosure rates.
Suppose that good X has few close substitutes and that good Y has many close substitutes. Which good would you expect to have more price inelastic demand?
Using the above table, the average product and marginal product when 4 workers are employed are
A. 13 and 13, respectively. B. 14 and 13, respectively. C. 13 and 9, respectively. D. 13 and 14, respectively.
Out of the various types of M1 (demand deposits, coins and bank notes), only demand deposits
(a) can be used to generate loans by banks. (b) serve as a medium of exchange. (c) serve as a unit of account. (d) store value.