The rate-of-return regulated public utility can have incentive to price some services too high and others too low, relative to efficient prices
Indicate whether the statement is true or false
T As in its tendency to favor capital over other inputs, the rate-of-return regulated public prefers to sell services that require more capital. So it may set the price of a peak-load service low in order to create more demand for capital, and price off-peak service high to make profit that the capital can be used to justify.
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Under the cartel, the individual firm's quantity is (assuming that it wants to cheat on its quota) 
Figure 42.2
A. Q1. B. Q2. C. Q3. D. Qb.
Which of the following would be the best measure of the cost of living?
A) consumer price index B) GDP deflator C) real GDP per person D) real GDP
The Federal Reserve System was NOT
A. established with the 1913 passage of the Federal Reserve Act. B. the first attempt to have a United States central bank. C. intended to act as a "lender of last resort." D. designed to lend money to inherently sound banks so that they can survive financial panics.
The aggregate supply curve tells us
A. what the effect of changes in interest rates will be on real GDP. B. the total amount of planned production in an economy. C. how changes in the price level affect the amount paid for all commodities. D. anything about the quantity demanded of all commodities and the price level.