Regulatory commissions often set a(n) ____ for a regulated business
A) economic profit.
B) fair rate of return.
C) overhead charge.
D) entry barrier.
B
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The taxicab fare in Newville is regulated. The fare currently charged is $6 a ride. Newville taxicab drivers want to obtain government's permission to lower the fare, which they think will increase their total revenue
From this we can conclude that the drivers believe that the demand for taxicab rides is A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic.
In September, buyers of silver expect that the price of silver will rise in October. What happens in the silver market in September, holding all else constant?
A) The demand curve shifts to the right. B) The quantity demanded increases. C) The quantity demanded decreases. D) The demand curve shifts to the left.
Which one of the following is not true?
a. An exchange rate is the price of one currency in terms of another. b. An exchange rate is the means by which the price of a good in one country is translated into the price to the buyer in another country. c. The cost of a foreign good in dollars will depend on the current exchange rate. d. The exchange rate will affect the willingness of foreign buyers and sellers to trade with each other. e. The exchange rate is the price of a currency in terms of another currency for exchanges of goods and services but not for financial transactions.
The idea that higher prices reduce the purchasing power of financial assets and lead to less consumption and more saving is known as the
a. real wealth effect b. interest rate effect c. foreign purchases effect d. income effect e. aggregate demand effect