In practice, placing a price control on a natural monopoly:
A. always creates the same outcome as public ownership of the industry.
B. is easy and commonly practiced.
C. is difficult because of lack of information.
D. is never a good idea.
Answer: C
You might also like to view...
A tariff on imports affects foreign suppliers ____; a quota affects foreign suppliers ____.
A. effectively; ineffectively B. haphazardly; carefully C. equally; capriciously D. unfairly; fairly E. unequally; unequally
In the circular flow model, producers
A) and households spend earnings from resource sales on goods and services in the factor market. B) spend earnings from resource sales on goods and services in the product market. C) sell goods and services in the input market. D) hire resources sold by households in the factor market.
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for frozen yogurt. Which panel describes what happens in the market for frozen yogurt when the price of ice cream, a substitute product, increases?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
The federal budget went $161 billion in fiscal year 2007 to $1 trillion in the next two to three years. What are the main factors that contributed to this increase?