Suppose an unregulated natural monopoly becomes regulated using marginal-cost pricing. As a result, the firm's profits would
a. increase substantially.
b. decrease substantially, but remain positive.
c. be brought down to zero.
d. become negative.
d. become negative.
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An appreciation of the domestic currency can be caused by ________
A) a decrease in the domestic interest rate B) an increase in the domestic interest rate and expectation of an increase in the value of the domestic currency C) an increase in the domestic interest rate and the expectation of a decrease in the value of the domestic currency D) the expectation of a decrease in the value of the domestic currency
Economists expect the relationship between consumption and disposable income to be
a. unpredictable. b. transitory. c. fixed. d. inverse e. stable.
Most economists believe that monetary neutrality provides
a. a good description of both the long run and the short run. b. a good description of neither the long run nor the short run. c. a good description of the short run, but not the long run. d. a good description of the long run, but not the short run.
If a person without a job is not actively looking for work, that person is classified as not being in the labor force.
Answer the following statement true (T) or false (F)