If the government offers to reduce your property taxes by 10 percent if you install solar heating for your home, this would be an example of
A) police power.
B) incentives.
C) disincentives.
D) ceteris paribus.
B
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Unlike either the United States or the United Kingdom, ________ did not occur in China's economy between 2007 and 2009
A) a massive monetary and fiscal stimulus B) a negative demand shock C) a negative rate of inflation (i.e., deflation) D) a sharp increase in financial frictions E) a positive supply shock
Thomas Edison once complained that he was not making a profit selling light bulbs because his plants were operating 25 percent below capacity. He estimated that he could increase output 25 percent with a 2 percent increase in the cost of production. He sold the 25 percent on the foreign market at a price below what he called the “cost of production.” We can deduce that Edison really meant
A. marginal cost was below average cost but less than marginal revenue. B. average cost exceeded variable cost, which exceeded marginal revenue. C. variable cost exceeded fixed cost but was less than marginal revenue. D. marginal cost was above average cost but greater than marginal revenue.
Regulation of a natural monopoly that forces it to price and produce as if it were a competitive firm results in
A) the market being instantly competitive. B) higher profits for the monopoly. C) economic losses for the monopoly. D) a highly unstable marketplace.
A trading block that includes the United States, Mexico, and Canada was established by the
a. Maastricht Agreement. b. General Agreement on Tariffs and Trade. c. North American Free Trade Agreement. d. Organization of American States.