Regulators often raise prices instead of lowering them. This is designed to

A. prevent the exit of competitors.
B. protect the consumer from cheap products.
C. ensure high-quality products.
D. ensure workers are adequately paid.


Answer: A

Economics

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Does a competitive firm's price equal the minimum of its average total cost in the short run, in the long run, or both? Explain.

What will be an ideal response?

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Fee-for-service insurance

A. requires you pay for services before they are performed. B. has more meddlesome bureaucrats than an HMO. C. is typically more expensive than an HMO covering the same illnesses. D. does not allow patients to pick their own doctor.

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Graphically an increase in the short-run aggregate supply line represents a(n) ________, and a shift leftward of the long-run aggregate supply line represents a(n) ________.

A. adverse inflation shock; shock to potential output B. favorable inflation shock; shock to potential output C. shock to potential output; favorable inflation shock D. shock to potential output; adverse inflation shock

Economics

The cost of hiring one more worker, ceteris paribus, is known as

A) marginal revenue product. B) marginal physical product. C) marginal factor cost. D) marginal wage.

Economics