In the early 2000s, Chinese officials indicted members of a forgery syndicate that sold several hundred diplomas to high school graduates who needed the diplomas to take employment tests. This situation, where having the certificate of knowledge is more important than the knowledge itself, is known as:

The income effect of a decrease in the price of legal services, a normal good, results in

A) an increase in the demand for legal services. B) an increase in the quantity of legal services demanded. C) a decrease in the demand for legal services. D) a decrease in the quantity of legal services demanded.

If government regulators force a natural monopoly to produce where price equals marginal cost, the monopoly will earn

a. a "fair return" b. positive economic profit c. zero economic profit d. negative economic profit e. greater economic profit than if it were unregulated