Refer to the above figure. An unregulated natural monopolist would choose
A) output rate of Q1 and price P2.
B) output rate Q1 and price P5.
C) output rate Q3 and price P3.
D) output rate Q4 and price P1.
B
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In the United States today, how much gold will the Federal Reserve give you in exchange for $1?
A) 1 ounce of gold B) none C) 1/35th of an ounce of gold D) $1 worth of gold (based on the market price of an ounce of gold at the time you exchange the $1)
An example of "automatic stabilizers" is a rise in ________ causing the budget deficit to ________
A) real GDP, fall B) real GDP, rise C) government expenditures, fall D) government expenditures, rise E) the average tax rate, fall
The moral hazard associated with managers whose productivity is difficult to quantify can be decreased with
A) piece-rate contracts. B) year-end bonuses. C) decreased wages. D) adverse selection.
In the health insurance context, moral hazard occurs when patients make less healthy choices and doctors provide treatments that have little medical benefit because they know the costs will be covered by insurance.
Answer the following statement true (T) or false (F)