Legislation or the creation of new rules to end property rights disagreements
What will be an ideal response?
can reduce negative externalities by clarifying property rights.
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By the 2000s, an important change in the mortgage market had occurred when ________ became significant participants in the secondary market for mortgages
A) Federal Reserve Banks B) commercial banks C) savings banks D) investment banks
Richstone Bakery reduces the price of wheat bread from $2 to $1 and finds that quantity demanded increases from 100 to 120 loaves. Richstone calculates that the price elasticity of demand for wheat bread is (approximately)
a. 0.00 b. 0.30 c. 5.00 d. 10.5 e. 2.00
If the price of oil increases significantly, buyers and sellers of gasoline will both expect the price of gasoline to also increase. If sellers of gasoline act on their expectations more than the buyers do, then:
A. The equilibrium price of gasoline will increase while the equilibrium quantity will decrease B. The equilibrium price of gasoline will increase while the equilibrium quantity will increase C. The equilibrium price of gasoline will decrease while the equilibrium quantity will decrease D. The equilibrium price of gasoline will decrease while the equilibrium quantity will increase
Which of the following best describes the difference between cost-of-service regulation and rate-of-return regulation?
A. Costs determine prices in cost-of-service regulation and prices are set in rate-of-return regulation so the firm can make a normal rate of return. B. Costs determine prices in cost-of-service regulation and prices determine costs in rate-of-return regulation. C. Variable costs determine prices in cost-of-service regulation and prices are set in rate-of-return regulation so the firm can make an economic profit. D. Regulators determine prices in cost-of-service regulation and market forces determine prices in rate-of-return regulation.