Recall the Application about the British experience with private water companies in the nineteenth century to answer the following question(s).Recall the Application. The British experience with water privatization showed that:
A. a single firm providing water will be profitable, but two firms will not.
B. two or more firms providing water will be profitable, but a single firm will not.
C. it does not matter how many firms provide water, as none will be profitable.
D. it does not matter how many firms provide water, as all will be profitable.
Answer: A
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The Federal Reserve System controls the money supply primarily through
A. open market operations. B. accounting operations. C. reserve requirement changes. D. jawboning.
Assume perfect capital mobility. Under a fixed exchange rate system, expansionary fiscal policy causes the value of the dollar to _____, while expansionary monetary policy causes the value of the dollar to _____
a. rise; rise b. fall; fall c. fall; rise d. rise; fall
The concept of utility maximization:
A. is solely used to measure an individual's satisfaction with his consumption choices. B. can be used broadly to think about choices made motivated by satisfaction, envy, status, or kindness. C. assumes each individual seeks to increase his own personal satisfaction regardless of others. D. None of these is true.
Which of the following is most likely an inferior good?
a. an antique car b. gasoline c. a bus ticket d. an airline ticket