Private ownership will lead to better incentives and better social decisions in a regulated firm
Indicate whether the statement is true or false
F Private ownership may lead to better incentives through profit seeking but the result may not be socially beneficial as, for example, when a monopoly sets prices.
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According to the new classical view, if the money supply and prices fall but output remains the same indicates that
a. expectations must be adaptive. b. this change in the money supply was anticipated. c. aggregate supply must have shifted upward. d. none of the above can explain this.
The cost of capital is:
a. concerned with what a firm has to pay for the capital b. the rate of return required by investors c. determined in the capital markets d. all of the above e. b and c only
A new idea was introduced in macroeconomic analysis during the early 1970s to describe the unusual combination of high inflation and high rates of unemployment. It was
a. stagflation b. the business cycle c. fine-tuning d. crowding out e. cost-push inflation
In well-working markets, cost economies from standardization are reflected in the level of product variety.
Answer the following statement true (T) or false (F)