There are two can companies, American and National, which have entered into a collusive agreement. The payoff matrix of economic profits is above. If both firms cheat on the collusive agreement, what amount of economic profit is made by American?
A) $0
B) $3,000
C) $4,000
D) -$2,000
A
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Within the circular flow model, economists define households as
A) married or engaged couples. B) families living in their own houses. C) individuals or groups living together. D) individuals or groups within the same legally defined family. E) families with at least 2 children.
According to the benefits principle, it is fair for people to pay taxes based on their ability to shoulder the tax burden
a. True b. False Indicate whether the statement is true or false
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Gross Domestic Product:
What will be an ideal response?