Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. Which of the following statements is TRUE?
A) Under both the capture theory and the share-the-gains, share-the-pain theory profits will decrease.
B) An increase in price will occur quicker in the share-the gains, share-the-pain theory than the capture theory.
C) An increase in price will occur quicker in the capture theory than the share-the-gains, share-the-pain theory.
D) In the capture theory there will be an increase in price but not in the share-the-gains, share-the-pain theory.
Answer: C
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Which of the following is the significance of a country's price index? a. It helps in measuring changes in the nominal interest rate in a country
b. It helps in measuring the total disposable income of a country. c. It helps in determining a country's real GDP each year. d. It helps in measuring changes in the prices of only luxury goods. e. It helps in measuring the demand for goods and services exported by a country.
The benefits principle is used to justify
a. sales taxes. b. gasoline taxes. c. "sin" taxes on cigarettes and alcoholic beverages. d. personal income taxes.
As real GDP falls,
a. money demand rises, so the interest rate rises. b. money demand rises, so the interest rate falls c. money demand falls, so the interest rate rises. d. money demand falls, so the interest rate falls.
From 1948 to 2010, the United States has experienced only 4 recessions.
Answer the following statement true (T) or false (F)