Regulating an industry to remove all economic profit
a. removes all incentive for efficiency and responsiveness to consumer demand.
b. removes distortions caused by cross subsidies.
c. removes allocative inefficiency.
d. increases incentives to be productively efficient.
a
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Someone who turns down an opportunity to purchase a Bible for $5 and then immediately pays $5 to attend a movie thereby expects to obtain more satisfaction from seeing the movie than from
A) cultivating the spiritual life. B) deepening his religious faith. C) owning the Bible just offered to him. D) reading the Bible.
Intraindustry trade is most common in the trade patterns of
A) developing countries of Asia and Africa. B) developed countries of Western Europe. C) all countries. D) None of the above.
Carl and Carly are American residents. Carl buys stock of a corporation in Austria. Carly opens a coffee shop in Austria. Whose purchase, by itself, decreases Austria's net capital outflow?
a. Carl's b. Carly's c. both Carl's and Carly's d. neither Carl's nor Carly's
The goods and services used to calculate the consumer price index represent ________.
A. what an average household buys B. what households, businesses, and government purchase on average C. what households, businesses, and government purchase in total D. every household buys in total