The problem with adopting a fair-return pricing policy for a natural monopoly is that:
A. Economic profits will be positive
B. Economic profits will be negative
C. It is not productively efficient
D. It is not allocatively efficient
D. It is not allocatively efficient
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In the figure above, the length of the double sided arrow is the
A) consumer surplus. B) deadweight loss. C) producer surplus. D) economic loss per unit. E) economic profit.
An unexpected fall in GDP growth should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
An increase in aggregate demand will have a smaller long-run effect on real GDP if the: a. aggregate demand curve is flat
b. short-run aggregate supply curve is horizontal. c. economy is well below potential output. d. economy is already at potential output. e. aggregate demand curve is fairly steep.
An example of a derivative is a:
A. futures contract. B. stock. C. bond. D. fixed-income security.