Rate of return regulation is most similar to
A) a marginal cost pricing rule.
B) an average cost pricing rule.
C) an average variable cost pricing rule.
D) an inflation cost pricing rule.
B
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Which of the following are devices that the government uses to achieve a more efficient allocation of resources in the presence of external benefits?
A) taxes, private subsidies, and regulation B) public provision, taxes, and private subsidies C) regulations, public provision, and vouchers D) vouchers, public provision, and private subsidies E) public provision, taxes, and vouchers
If there is initially a federal budget deficit, and government purchases and transfer payments both rise:
a. AD increases and the budget deficit increases. b. AD increases and the budget deficit decreases. c. AD decreases and the budget deficit increases. d. AD decreases and the budget deficit decreases.