Historically, one problem found in most regulatory commissions is
a. the government cannot find qualified commissioners
b. the U.S. Constitution requires laissez-faire
c. the company will headquarter itself in a foreign country
d. the regulators become the protectors of the industry
e. price is set too low and most regulated firms go bankrupt
D
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A tax rate cut, increase in government purchases, and creating an investment tax credit would shift: a. only the aggregate demand curve
b. only the aggregate supply curve. c. both the aggregate supply and aggregate demand curves. d. neither the aggregate supply nor the aggregate demand curve.
Under which circumstance is the Fed most likely to carry out a defensive open market operation?
A) to prevent an increase in inflation B) if a snowstorm results in a delay in check clearing, resulting in an increase in the Federal Reserve float C) to defend the value of the U.S. dollar on the foreign exchange market D) to prevent the negative impact of a demand shock
If there were no real wealth or interest rate effect, the aggregate demand curve would still be downward sloping
a. True b. False Indicate whether the statement is true or false
In theory the market's willingness-to-pay (WTP) should be equal to the market's willingness-to-accept (WTA). In other words, if you are willing-to-pay $1 for an incremental improvement in tap water quality, then you should be willing-to-accept $1 for an incremental decrease in tap water quality. In practice, however, the two are often estimated to be unequal. Which of the following helps to explain this disparity?
a. the WTA/WTP disparity b. the endowment effect c. benefit transfer d. value of statistical life e. cost-benefit analysis f. expected value g. risk and uncertainty h. None of the above.