The Braden brothers considered starting a new skydiving company. Once they read the government regulations they would have to comply with, they changed their minds. This is an example of
A. An administrative cost of regulation.
B. An efficiency cost of regulation.
C. An equity cost of regulation.
D. A compliance cost of regulation.
Answer: B
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Consider the following regression equation: 
. What does 
imply?
A. 
measures the ceteris paribus effect of 
on 
.
B. 
measures the ceteris paribus effect of 
on 
.
C. 
measures the ceteris paribus effect of 
on 
.
D. 
measures the ceteris paribus effect of 
on 
.
Consumers may not experience the benefits of economies of scale if a natural monopoly:
A.) Raises price and fails to pass cost savings on to consumers. B.) Engages in marginal cost pricing. C.) Raises output beyond efficient levels. D.) Is regulated by the government.
Economists consider governments to be "wasteful":
A. whenever they over- or underallocate resources to a project. B. only when they overallocate resources to a project. C. only when they underallocate resources to a project. D. whenever they attempt to correct a market failure.
If the marginal cost of producing a public good is less than society's total willingness to pay per unit, then
A. the optimal amount of the public good is being produced. B. more than the optimal amount of the public good is being produced. C. the amount of output being produced could be either greater than or less than the optimal amount. D. less than the optimal amount of the public good is being produced.