One type of economic regulation often used in the United States by various public utility commissions allows prices to reflect only the actual cost of production and no monopoly profits. This type of economic regulation is known as
A) rate-of-return regulation.
B) cost-of-service regulation.
C) price per constant-quality-unit regulation.
D) creative response regulation.
B
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According to projections for 2016 by the Tax Policy Center, the 20 percent of U.S. taxpayers who make the highest incomes
A) pay about 92 percent of federal income taxes but only about 20 percent of Social Security and Medicare payroll taxes. B) pay more in excise and other taxes than they pay in Social Security and Medicare payroll taxes. C) pay almost 69 percent of federal income taxes. D) use loopholes and tax exemptions to reduce their share of federal income taxes to less than 20 percent.
Overall, professional securities analysts have a 75 percent success rate in predicting winning stocks.
Answer the following statement true (T) or false (F)
Which of the following is TRUE of the Fed's credit policy?
A) The Fed has implemented a credit policy since 1914. B) Today about 40 percent of the Fed's asset holdings are related to its conduct of credit policy. C) The Fed's credit policy is extended only to U.S. financial institutions. D) The Fed's objective for its credit policy is to reduce the federal funds rate.
A firm's demand for labor is known as a "derived demand" because
a. the firm gains utility from hiring more labor. b. the amount of labor hired depends upon how much output the firm can sell. c. the wage rate paid to workers is derived from the market for labor. d. it is derived from the demand for capital.