Regulation that is based on allowing prices to reflect only the actual operating cost of production is known as
A) average cost regulation.
B) marginal cost regulation.
C) rate-of-return regulation.
D) cost-of-service regulation.
D
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Economists use the term "marginal" to describe costs and benefits
a. that are minimal and hardly worth noting. b. that are incremental and thus relevant to decision making. c. that are noteworthy but not the most important. d. whose importance can be minimized through hard work. e. none of the above.
If the Fed buys $10 million dollars in government bonds from a bank, and the legal reserve requirement is 20 percent, the banking system is able to expand the money supply by
a. $10 million b. $8 million c. $2 million d. $40 million e. $50 million
Exhibit 8-2 Total revenue and total cost graph
In Exhibit 8-2, economic profit for the firm is at a maximum when output per week equals:
A. 100 units. B. 200 units. C. 250 units. D. 300 units.
A tariff is a tax levied on imports by a country.
Answer the following statement true (T) or false (F)