If the natural monopoly shown in the figure above is unregulated, then the deadweight loss will be
A) $0.
B) $2 million.
C) $4 million.
D) $8 million.
C
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An uncrowded toll road is ________ because it is ________
A) a public good; both nonrival and nonexcludable B) not a public good; nonrival but excludable C) not a public good; nonexcludable but rival D) not a public good; both rival and excludable
"Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the short run in the corn market, what is TRUE if the production of ethanol increases?
A) The demand curve for individual corn farmers will shift upward. B) The price individual corn farmers receive will decrease. C) The total cost curve for individual corn farmers will shift upward. D) The marginal cost curve for individual corn farmers will shift downward.
The problem of moral hazard helps explain why the International Monetary Fund _______ the Asian countries during their 1997-1998 crisis and _______ Argentina during its 20011-2002 crisis
a. helped; abandoned. b. abandoned; helped. c. helped; helped d. abandoned; abandoned. e. none of the above.
If the fluctuations in the economy's real growth rate from year to year are caused primarily by variations in the rate at which aggregate demand increases, then data would show the most rapid inflation occurs when
a. unemployment is the highest, and the lowest inflation occurs when unemployment is the lowest. b. AS grows most rapidly, and the lowest inflation occurs when AS grows most slowly. c. AD rises most slowly, and the lowest inflation occurs when AD rises most rapidly. d. output grows most rapidly and the lowest inflation when output grows most slowly.