One of the tendencies that is common among firms regulated using rate of return regulation is to
A) increase production to an inefficient level.
B) inflate the costs of production.
C) incur an economic loss.
D) understate the costs of production.
E) overstate their total revenue.
B
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According to the IS equation, a change in which of the following will cause a change in output?
A) real interest rate B) autonomous investment C) marginal propensity to consume D) all of the above E) none of the above
The manager of a U.S. office building hires a local company owned by a recent Canadian immigrant to handle landscape maintenance. This is a form of
A) domestic outsourcing. B) vertical integration. C) international outsourcing. D) insourcing.
The demand for beer is more elastic than the demand for milk, so a tax on beer would have a smaller deadweight loss than an equivalent tax on milk, all else equal
a. True b. False Indicate whether the statement is true or false
If there are only two goods in the economy, one whose price rises by 3 percent and one by 5 percent, it is possible that inflation is:
A. 4 percent. B. 5 percent. C. 3 percent. D. 7 percent.