Which of the following is NOT an objective of economic regulation?
A) to regulate the prices enterprises are allowed to charge
B) to fix prices so that they are never allowed to rise
C) to keep rates of return in an industry at a competitive level
D) to prevent monopoly profits
Answer: B
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In the Keynesian theory of labor supply, price expectations are based
a. only on the future behavior of the price level. b. on the past, present, and future behavior of the price level. c. on the present behavior of the price level. d. on the past behavior of the price level.
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As inflation drives up prices, people attempt to find substitutes and adjust what they buy. The resulting substitution bias problem causes the CPI to
What will be an ideal response?