The difference between cost-of-service regulation and rate-of-return regulation is that
A) the former sets prices based on actual costs, and the latter focuses on setting prices such that the firm earns a normal rate of return.
B) the latter sets prices first, and then the firm must keep costs in line if it wants to earn a profit, and the former sets price high enough to cover costs.
C) the former uses marginal cost pricing and the latter uses average cost pricing.
D) the former uses average cost pricing and the latter uses marginal cost pricing.
Answer: A
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The fee charged by a typical hedge fund are sometimes called:
A) 12b-1 fees B) hedging premiums C) loads D) carried interest
Which one of the following persons would be considered unemployed?
a. a person not working who has given up searching for a job b. a part-time worker looking for a full-time job c. a construction worker who was laid off due to cold weather d. a full-time college student who is not a member of the labor force
In the graph showing aggregate demand and aggregate supply after a negative supply shock, we can see that at Point B, ______ at Point A.
a. RGDP is higher than
b. RGDP is lower than
c. price levels are the same as
d. price levels are lower than
The services of real estate brokers are provided in a competitive market. If the state Board of Realtors enacts several requirements that limit the number of real estate brokers, then social welfare will most likely
A) not change, but there will be a transfer from consumer to producer. B) not change, but there will be a transfer from producer to consumer. C) decrease, although producers are made better off. D) decrease, although consumers are made better off.