One goal of rate-of-return regulation is the prevention of

A. free market entry.
B. environmental degradation.
C. positive economic profits.
D. poor quality service.

Answer: C

Economics

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Which of the following guarantees the deposits in almost all banks up to a limit of $250,000?

a. the Federal Reserve b. the FDIC c. the U.S. Treasury d. Bank of America Corporation

Economics

Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost. One major consequence of doing this is that hospitals and other providers are then:

A. Reducing the amount of health-care services they provide B. Passing the uncovered costs on to patients with private health insurance C. Denying services to many Medicare and Medicaid patients D. Filing for bankruptcy regularly

Economics