When regulating a natural monopoly, government officials
a. can set an efficient price, but the firm will suffer a loss
b. can arrange a Pareto improvement by leaving the firm alone
c. should force the firm to set a price equal to minimum marginal cost
d. should force the firm to set a price equal to minimum long-run average total cost
e. will increase efficiency if they force the firm to produce where MR = MC.
A
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Voluntary free trade results in:
a. population growth. b. inflation. c. higher living standards. d. income disparity. e. unemployment.
If the elasticity of supply of a good was 2, how much would the price have to increase to lead to an increase in output of 6 percent? a. 3 percent
b. 4 percent. c. 8 percent. d. 12 percent.
The concerns about the 2009 $787 billion stimulus by the Obama Administration were that
a. it was too small. b. it was too large. c. it was not well designed. d. Some economists opposed any stimulus whatsoever. e. All of the above.
Workers in durable-goods industries are ________ workers in service industries to lose their jobs during a recession.
A. equally likely as B. less likely than C. much less likely than D. more likely than