If tax revenue is $230 billion and the government's outlays are $235 billion, then the budget
A) deficit is $5 billion, and government debt will remain the same.
B) surplus is $5 billion, and government debt will increase by $5 billion.
C) deficit is $5 billion, and government debt will increase by $5 billion.
D) deficit is $5 billion, and government debt will decrease by $5 billion.
E) surplus is $230 billion, and the budget deficit is $235 billion.
C
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A firm with market power faces the following estimated demand and average variable cost functions:Qd = 39,000 - 500P + 0.4M - 8,000PRAVC = 30 - 0.005Q + 0.0000005Q2where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The firm expects income to be $40,000 and PR to be $2. Total fixed cost is $100,000. What is the profit-maximizing choice of output?
A. 10,000 units B. 12,000 units C. 0 units, the firm shuts down D. 16,000 units E. 8,000 units
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A. Program trading B. Market limits C. Stop orders D. Circuit breakers
The marginal rate of substitution:
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