Suppose technical change permits cable television companies to provide their services at lower rates. The share-the-gains, share-the-pains theory would predict that the regulators would
A) permit the firms to keep the savings and would lower prices only if the firms were pressured to do so.
B) force the firms to pass all the savings on to consumers in the form of lower prices.
C) force the firms to pass the savings on to consumers in the form of better service.
D) force the firms to pass some of the savings on to consumers and to permit the firms to keep some of the savings themselves.
D
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Refer to the figure above. In free trade A will import
A) 700 units from country C. B) 700 units from C and 600 units from B. C) 600 units from C. D) 600 units from C and 400 units from B.
Because inflation was not a serious problem during the Great Depression, Keynes's analysis assumed
A) that unemployment also was not a problem. B) that the money supply was fixed. C) that the price level was fixed. D) that monetary policy is not effective.
Derived demand refers to
a. demand curves derived from utility functions b. an individual demand curve estimated from a market demand curve c. a market demand curve estimated from individual demand curves d. demand for a resource derived from the demand for the product produced by that resource e. demand for a product derived from the demand for the resource used to make that product
When the required reserve ratio is lowered, the money multiplier,
A. increases, and the amount of excess reserves increases in the banking system. B. decreases, and the amount of excess reserves increases in the banking system. C. decreases, and the amount of excess reserves decreases in the banking system. D. increases, and the amount of excess reserves decreases in the banking system.