Cable television is regulated because of its monopolistic cost structure. Baseball and basketball games, which also have monopolistic cost structures, are unregulated. What do these activities (watching TV and going to the ball park or stadium) not have in common?
a. being a leisure activity
b. being a luxury
c. entertainment value
d. large-scale public consumption
e. industry trade groups
D
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If the government imposes a price ceiling, then:
a. producers must charge the ceiling price. b. the price offered by producers must be at or above the ceiling price. c. the price offered by producers must be at or below the ceiling price. d. producers would be inclined to increase the quantity supplied. e. the market supply curve will shift to the right.
The purchase of a new scanner by a computer graphics business is included in which expenditure category of GDP?
a. consumption b. investment c. government purchases d. net exports
The following table describes utility for consuming cans of soda. At what point does the law of diminishing marginal utility set in?Cans of SodaTotal utility114230347457556650742
A. Marginal utility never diminishes. B. Between three and four cans C. Marginal utility diminishes everywhere. D. Between four and five cans
Welfare reforms enacted in 1996 put more pressure on welfare recipients to look for work. The new law mandated cutting off benefits after a certain length of time. Which of the following is likely to occur as a result of this provision?
A. the natural rate of unemployment and the unemployment rate are likely to increase. B. the natural rate of unemployment is likely to decrease, but the unemployment rate is likely to increase. C. the natural rate of unemployment is not affected, but the unemployment rate is likely to increase. D. the natural rate of unemployment is not affected, but the unemployment rate is likely to fall.