A regulated natural monopoly that must set price equal to average cost will
a. suffer an economic loss
b. earn a net economic profit
c. earn a normal profit
d. earn so little that it will close in the long run
e. earn no profits of any kind
C
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To say individuals seek an "economically efficient" course of action is another way of saying they
A) waste precious resources. B) are not concerned about the wellbeing of anybody else. C) economize. D) measure everything according to the bottom line: money.
A country in which a substantial amount of the factories and stores that produce domestic goods and services are foreign-owned is most likely a country in which
A) GDP is much larger than GNP. B) GNP is much larger than GDP. C) GDP is roughly equal to GNP. D) the relationship between GDP and GNP no longer exists.
According to Gary Libecap and Ronald Johnson, which of the following was a positive outcome of fraudulently obtaining land by larger firms?
a. Fines charged to fraudulent companies provided substantial revenues for the federal government. b. Resources were transferred to companies that could take advantage of economies of scale. c. Conflicts between farmers and railroads were reduced. d. Legislators friendly to economic development were elected because of backing from the fraudulent companies.
The efforts of a nation to influence exchange rates is known as:
A. open market operations. B. foreign exchange market intervention. C. rate discrimination. D. establishing terms of trade.