1-Which of the following is not a component of the index which measures economic
ID: 1128182 • Letter: 1
Question
1-Which of the following is not a component of the index which measures economic freedom of a country?
A.
Government size
B.
Labor freedom
C.
Monetary freedom
D.
Cultural freedom
E.
Freedom from corruption
2-When regulators require that a natural monopoly sets price equal to average total cost:
A.
the firm earns a super normal profit.
B.
the firm operates at the profit-maximizing level of output.
C.
it is said to be allowing a fair rate of return.
D.
the firm shuts down temporarily.
E.
the firm shuts down permanently.
A.
Government size
B.
Labor freedom
C.
Monetary freedom
D.
Cultural freedom
E.
Freedom from corruption
Explanation / Answer
Ans:
1) Option D
Cultural freedom
Economic freedom index considers aspects such government size, labor freedom,monetary freedom,absence of corruption. However it does not include Cultural freedom.
2) Option C
it is said to be allowing a fair rate of return
When price equal to average total cost is set the natural monopoly will just break even and it said be fair rate of return.
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