One problem that might occur as a result of economic regulation is
A. the quality of service might be lowered.
B. the demand for the good may be greater than the supply.
C. the firm may be earning more than a normal rate of return on investment.
D. that social regulation may follow.
Answer: A
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In a two-period model, holding everything else constant, an increase in future taxes
A) unambiguously increases the current account surplus. B) unambiguously decreases the current account surplus. C) has an uncertain effect on the current account surplus. D) has no effect on the current account surplus, as long as Ricardian equivalence holds.
Which statement best defines producer surplus?
a. the amount that a seller would have liked to have charged, minus the amount that they actually received b. the amount that a seller is paid for a good minus the seller’s actual cost c. the amount that individuals would have been willing to pay, minus the amount that they actually paid d. when it is impossible to improve the situation of one party without imposing a cost on another
The auditors who are engaged to examine the financial statements of a business enterprise will request a cutoff bank statement primarily in order to:
A) detect lapping. B) detect kiting. C) verify reconciling items on the client's bank reconciliation. D) verify the cash balance reported on the standard financial institution confirmation form.
Firms cannot enter an industry in which positive profits are being earned in
A. the short run. B. the long run. C. the short run and in the long run. D. As long as positive profits are being earned, firms can enter the industry in both the short run and the long run.