One argument for having the government regulate natural monopolies is that without regulation:
A. These monopolies usually produce things that are potentially harmful to our health
B. These monopolies produce at a level where marginal benefit is greater than marginal cost
C. These monopolies produce at a level where marginal benefit is less than marginal cost
D. The industry would become competitive and there would be too many firms in the market to achieve efficiency
B. These monopolies produce at a level where marginal benefit is greater than marginal cost
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Refer to Figure 13-2. Ceteris paribus, an increase in workers and firms adjusting to having previously overestimated the price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
GDP in a country grew from $10 billion to $14 billion over the span of 5 years. The percentage change in GDP was
A) 4%. B) 7%. C) 10%. D) 40%.
The federal government and insurance companies are examples of third party
A) payers for health care. B) users of health care. C) providers of health care. D) observers of health care.
Net national product is equal to
a. GNP minus taxes. b. GNP plus transfer payments. c. GNP plus corporate profits. d. GNP minus capital consumption allowance.