Which of the Following Statements Regarding Economic Regulation Is TRUE

question 143

Multiple Choice

Which of the following statements regarding economic regulation is TRUE?

• A) Economic regulation has failed by insisting that firms must be allowed to earn a normal rate of return.
• B) Rate-of-return regulation has been much more effective than cost-of-service regulation.
• C) Economic regulation deals only with rates of return, and not with prices.
• D) Economic regulation deals mainly with prices firms charge, but firms can alter their return by altering quality of service, effectively raising the price per constant-quality-unit.

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Definitions:

Edward Hall

An anthropologist known for his studies of cross-cultural communication and the development of the concept of proxemics.

Proxemics

The study of human use of space and the effects that population density has on behavior, communication, and social interaction.

Gesture-Call System

A form of nonverbal communication involving bodily motions and vocal sounds used to convey messages, commonly observed in animals and early human development.