To avoid subsidies, the government should cap the price for natural monopolies at their:
A. marginal cost.
B. average total cost.
C. average variable cost.
D. fixed cost.
A. marginal cost.
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Rick withdraws $500 from his savings account, keeps $100 as currency, and deposits $400 in his checking account
A. M1 increases by $400 and M2 decreases by $500. B. M1 does not change, but M2 decreases by $500. C. M1 does not change, but M2 decreases by $400. D. M1 increases by $500 and M2 does not change.
Incentives are not likely to pose a problem:
A. if the interests of the employees and the employers are perfectly aligned. B. if the interests of the employees and the employers conflict somewhat. C. as long as employers can exploit the employees. D. if the interests of the employees and the employers conflict.
private ownership of property :
What will be an ideal response?
When consumers realize additional income in a household and spend the additional money, the portion of the additional income that is spent is measured by the:
A. credit increase theory. B. marginal propensity to consume. C. aggregate demand factor. D. measure of individual wealth.