If the regulator wants to avoid any deadweight loss in a natural monopoly market, the regulator has the firm set its price equal to its
A) average fixed cost.
B) average total cost.
C) average variable cost.
D) marginal cost.
D
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"Ceteris paribus" means
A) "invisible hand." B) "other things constant." C) "making all the necessary changes." D) "individual."
The Ahluwalia-Chenery Welfare Index
a. is a method used to measure changes in absolute poverty. b. shows the value judgement implications of using the change in income per capita as a measure of the change in development. c. is a method used to measure changes in inequality. d. is a method used to measure the growth rate of GDP.
The shoe leather costs of inflation include all of the following except:
A. the extra costs incurred to avoid holding cash. B. the installation of a new cash management system. C. the cost of more frequent trips to the bank. D. the lost purchasing power of cash.
If output growth exceeds population growth for a country, then:
A.) Average living standards will increase. B.) GDP must have grown at a very rapid rate. C.) Per capita GDP will decrease. D.) This country must have overcome the problem of scarcity.