Which of the following statements regarding economic regulation is TRUE?
A) Economic regulation has failed by insisting that firms must be allowed to earn a normal rate of return.
B) Rate-of-return regulation has been much more effective than cost-of-service regulation.
C) Economic regulation deals only with rates of return, and not with prices.
D) Economic regulation deals mainly with prices firms charge, but firms can alter their return by altering quality of service, effectively raising the price per constant-quality-unit.
D
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What is fiscal policy, who makes it, and what is it designed to influence?
What will be an ideal response?
Social regulation means that the government dictates the price that a firm must charge and/or the quantity that a firm must supply
a. True b. False Indicate whether the statement is true or false
Which one of these statements is always true?
a. Actual investment is equal to intended investment. b. Actual investment is equal to saving. c. Actual investment is equal to consumption. d. Intended investment is equal to saving. e. Intended investment is equal to consumption.
Which of the following compose the reserves of a commercial bank?
a. demand deposits and time deposits b. vault cash and deposits of the bank with the Federal Reserve c. U.S. securities and stock equity d. cash and U.S. securities