The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity
If Light-U-Up is regulated and must follow an average cost pricing rule, it will produce ________ and sell at a price of ________. A) 200 kwh; 30¢ per kwh
B) 200 kwh; 25¢ per kwh
C) 300 kwh; 20¢ per kwh
D) 400 kwh; 15¢ per kwh
C
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Which of the following is not an appropriate policy for a central bank to follow if the economy is plagued with deflation?
A) consistently pursuing policy to promote the credibility of the central bank B) explicitly and credibly targeting inflation C) using expansionary monetary policy to drive down interest rates D) increasing the target interest rate on overnight loans
Consider two countries, Muria and Zenya. In Muria total annual output is worth $800 million and people work 40 million hours. In Zenya total annual output is worth $900 million and people work 50 million hours. In which country is productivity higher?