Use the above figure. If a commission regulates the above monopoly using fair-return (average cost pricing), then the industry's output will be ________ and the product's price will be ________.
A. Q1; P1
B. Q4; P1
C. Q2; P3
D. Q3; P2
Answer: D
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Which of the following is NOT a method for promoting global economic growth?
A) reliance on private markets to direct capital goods toward their best use B) Count on the world's governments to develop policies that promote economic growth in developing nations. C) Encourage population growth so that developing nations' labor supply increases. D) market based approach
Suppose we were analyzing the pound per Swiss franc foreign exchange market. If Switzerland's risk level rises relative to England and nothing else changes, then
a. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market falls, causing an uncertain change in the value of the Swiss franc. b. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing an appreciation of the Swiss franc. c. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market rises, causing an uncertain change in the value of the Swiss franc. d. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market rises, causing an appreciation of the Swiss franc. e. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing a depreciation of the Swiss franc.
Fiscal policy may not work as policymakers intend it to work because of
A) crowding out. B) lags. C) the position of the physical production possibilities frontier. D) a and b E) a, b, and c
In a market for money,
A. borrowers are the suppliers and lenders are the consumers. B. both borrowers and lenders are the consumers. C. both borrowers and lenders are the suppliers. D. borrowers are the consumers and lenders are the suppliers.