The self-correcting tendency of the economy means that rising inflation eventually eliminates:

The figure above shows the production possibilities frontier for a country. If the country is producing at point D, then the

A) resources are being used efficiently. B) technology associated with producing SUVs and compact cars is advancing. C) resources are not being used efficiently and/or are unemployed. D) production of SUVs and compact cars is maximized. E) None of the above answers is correct because it is not possible to produce at point D.

Regulation that is based on allowing prices to reflect only the actual operating cost of production is known as

A) average cost regulation. B) marginal cost regulation. C) rate-of-return regulation. D) cost-of-service regulation.