Most natural monopolies are regulated at some level by a government because:

Most natural monopolies are regulated at some level by a government because:
 a. an unregulated natural monopolist would cause the problem of capital outflow.
  b. an unregulated natural monopolist would produce only for government bureaucrats.
  c. an unregulated natural monopolist would charge an inefficiently low price in the market.
  d. an unregulated natural monopolist would charge an inefficiently high price in the market.
  e. an unregulated natural monopolist would incur losses.

QUESTION 2

The term import refers to:
 a. a purchase of goods or services from another country.
  b. a business transaction between two or more domestic firms.
  c. a sale of goods or services to another nation.
  d. a tax on foreign merchandise.
  e. a trade agreement between two industrial countries.

QUESTION 3

In the United States, monopoly regulation began primarily because:
 a. there were no natural monopolies in the real world.
  b. the government wanted to promote other forms of business practices.
  c. monopolies did not typically follow occupational and safety rules.
  d. monopolies tended to restrict output and raise prices.
  e. most economists believed that the majority of industries were following the purely competitive model.

QUESTION 4

According to the World Bank, the high-income oil-exporting nations like Libya, Saudi Arabia, Kuwait, and the United Arab Emirates:
 a. are considered to be still-developing countries.
  b. are the major trade partners of the U.S.
  c. are considered as underdeveloped economies.
  d. have highly interdependent economies.
  e. are considered highly-developed countries.

QUESTION 5

Which of the following statements best describes the difference between economic regulation and social regulation?
 a. Economic regulation has little to do with price and output while social regulation explicitly deals with price and output.
  b. Social regulation is concerned with direct redistribution of wealth while economic regulation is concerned with accumulation of wealth.
  c. Economic regulation is concerned with direct redistribution of wealth while social regulation is concerned with accumulation of wealth.
  d. Social regulation has historically targeted industries such as railroads and airlines while economic regulation has all the industries under its purview.
  e. Economic regulation deals with price and output , while social regulation deals with health and safety matters that apply across several industries.

QUESTION 6

Which of the following economic indicators is used by the World Bank to classify countries as industrial or emerging economies?
 a. GDP
  b. Rate of inflation
  c. Net exports
  d. Per capita income
  e. Budget deficits