Price cap regulation is a type of regulation that
A) offers price subsidies to firms that comply with regulation guidelines.
B) is equivalent to rate of return.
C) sets the maximum price the firm can charge.
D) sets the minimum price the firm can charge.
C
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One common measure of the "standard of living" in a nation is ________.
A. real GDP B. population size C. the unemployment rate D. real GDP per capita
Which of the following would likely cause aggregate demand to shift to the right?
A. Increased income taxes B. Increased firm confidence C. Decreased government spending D. Increase in the aggregate price level.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases. B. initially increases, then decreases. C. decreases. D. remains constant.
For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an example of adverse selection?
a. After the loan has been made, individuals become careless with their finances b. Individuals most likely to default are the ones most likely to apply for the loan c. Borrowers investing their loan proceeds differently than the bank requires d. None of the above