The prices that are in the public's best interest will
a. always allow the regulated firm to break even.
b. always allow the regulated firm to make positive economic profits.
c. sometimes leave the regulated firm with economic losses.
d. leave the regulated firm with profits that are about 10 percent higher than those of other firms.
c
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Which of the following statements is true of a frictionless labor market?
A) The quantity of labor demanded always exceeds the quantity of labor supplied. B) Firms can instantly hire and fire workers. C) The quantity of labor supplied always exceeds the quantity of labor demanded. D) All firms pay below the equilibrium wage rate.
If Stock A and Stock B both decrease in value at the same time, they are
A) negatively correlated. B) uncorrelated. C) positively correlated. D) bad bets.
An annually balanced budget: a. is the surest path to economic stability
b. is required by the U.S. Constitution. c. dampens cyclical swings by decreasing government spending during expansions and increasing it during recessions. d. accentuates cyclical swings by increasing government spending during expansions and reducing it during recessions. e. is a goal that has only been achieved twice in the past 5 years.
Holding other factors constant, if food prices decline relative to the prices of other products, then the real wages of agricultural workers will ________ and employment of agricultural workers will ________.
A. decrease; decrease B. increase; decrease C. decrease; not change D. increase; increase