When a firm is regulated so that its price enables it to earn a specified target percent return on its capital, the regulation is called
A) rate of return regulation.
B) price cap regulation.
C) earnings limited regulation.
D) target pricing regulation.
A
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A(n) ________ in U.S. interest rates will cause a decrease in the demand for U.S. dollars and a(n) ________ in the (per dollar) exchange rate
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
A legislature that fishing nets to have holes large enough for young fish to avoid capture is a regulatory change aimed at increasing the likelihood of reaching sustainable fish populations
Indicate whether the statement is true or false
Adam Smith believed that if people were free to pursue their own interests,
a. public interest would be served quite well. b. less would be produced than if altruism were the guiding principle. c. they would generally apply their talents to unproductive activities that would generate little value to society. d. they would have little incentive to undertake productive activities.
You read a story in the newspaper about the "economies of mass production." This means that
A. fixed cost is less at larger levels of production. B. total cost is less at larger levels of production. C. marginal cost is less at larger levels of production. D. long-run average cost is less at larger levels of production.