Regulations are frequently implemented that attempt to deal with markets with high barriers to entry. Which statement is least likely to be a reason why they often fail
A. Regulators prevent monopolists from making a profit.
B. Regulators fail to fully understand the firms cost curves and demand schedule.
C. An existing firm in the industry is able to influence the regulatory board.
Which of the following is least likely to be considered a necessary condition for a monopolist to realize profits from price discrimination
A product for which the demand curve is downward sloping.
B. At least two groups of customers, each with a different price elasticity of demand.
C. Two different costs of production.
Which of the following is the most accurate definition of the unemployment rate The unemployment rate is the number of:
A. unemployed individuals divided by the number of employed individuals.
B. unemployed individuals divided by the total labor force.
C. unemployed individuals divided by the number of individuals employed plus the number of people in retirement.
Which of the following is most likely to occur in the short run if there is an unanticipated decrease in aggregate demand due to a reduction in business and consumer optimism
An increase in the rate of unemployment.
B. An increase in real GDP.
C. A higher rate of inflation.
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