Under cost-plus regulation, a regulated firm is permitted to charge prices that cover the explicit cost of production plus a markup to cover the:
A. cost of winning a government contract.
B. extra cost associated with the state ownership of natural monopolies.
C. owner's economic rent.
D. opportunity cost of the resources supplied by the firm's owners.
Answer: D
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Of the following high-income countries, which has the highest mortality ratio for cancer?
A) Canada B) Japan C) the United Kingdom D) the United States
An economy that is operating below its full-employment capacity is experiencing a(n):
a. tax-induced recession. b. recessionary gap. c. fiscal drag. d. market correction. e. inflationary gap.
Answer the following statements true (T) or false (F)
1. Double coincidence of wants is associated with a barter economy. 2. The more volatile the inflation rate, the weaker the money supply as a standard of deferred payment. 3. The multiple expansion of the money supply is made possible because money withdrawn from one bank finds its way into other banks. 4. A decrease in the level of required reserves will decrease a bank’s ability to extend loans. 5. If banks had $10 million in legal reserves, $105 million in check able deposits, and a 10 percent reserve requirement, they would have to reduce their check able deposits or increase their reserves.
Consumer surplus is the area located on the demand and supply graph ________ the equilibrium price point
a. below b. at the same point as c. above d. it is not found on the demand and supply graph