Policymakers are discussing various proposals regarding how to deal with natural monopolies. Senator Huff wants to regulate natural monopolies by equating price with average total cost. Huff contends that such a policy will ensure that monopolies make every effort to reduce costs. Senator Puff wants the government to own natural monopolies. Puff argues that government-owned monopolies usually do
a better job of holding down costs than privately owned monopolies. Which senator's argument is correct?
a. Senator Huff
b. Senator Puff
c. both senators
d. neither senator
d
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What is a period of economic growth as measured by a rise in real GDP called?
(A) An expansion (B) A contraction (C) A peak (D) A business cycle
Refer to the table. The real-balances effect of changes in the price level is:
Answer the question on the basis of the following table for a particular country in which C is
consumption expenditures, I g is gross investment expenditures, G is government expenditures,
X is exports, and M is imports. All figures are in billions of dollars. Each question is
independent of other question using the same table, unless otherwise stated.
A. shown by columns (1) and (2) of the table.
B. shown by columns (1) and (5) of the table.
C. shown by columns (1) and (4) of the table.
D. not shown by the data in the table.