The government will have to subsidize a natural monopoly in the long run if regulators choose to pursue:
a. marginal cost pricing
b. fair-return pricing.
c. per se pricing.
a
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A surplus will tend to occur at which price in Figure 4-21?
A. P1 B. P2 C. P3 D. There will be no surplus at the prices shown.
If the average propensity to consume is initially 0.8, the marginal propensity to consume is 0.75, and real disposable income increases by $1000, the new value of saving is
A) $200. B) $250. C) $800. D) $750.
A country that currently does not trade with other countries could benefit by
a. restricting imports and promoting exports. b. promoting imports and restricting exports. c. restricting both imports and exports. d. not restricting trade.
Income inequalities are greatest in
A. Poor countries. B. Highly developed countries. C. Countries with many factors of production. D. Rich countries.