Official data may overstate the extent of poverty because
a. poverty is a relative as opposed to an absolute concept.
b. it does not add "in-kind" transfers to the incomes of the poor.
c. it overstates the taxes paid by the poor.
d. it overestimates the amount the poor earn in the "underground economy."
b
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Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900. You may find it easier to answer the following questions if you fill in the payoff matrix below. 
width="383" />For Joe, keeping his price at $3 per gallon is a: A. profit-maximizing strategy. B. dominated strategy. C. revenue-maximizing strategy. D. dominant strategy.
Legislators in a democracy are more likely to support special interests than the broad interests of citizens generally because
A) incumbents have such powerful advantages in election campaigns. B) money plays such a large role in political campaigns. C) they cannot know what the public interest requires in the absence of market information. D) they do not have to fear being voted out of office. E) they pay attention to the people paying attention to them.
Comment on the following statement: "In economics, investment means a wide variety of things including purchases of stocks, bonds, and other financial assets."
What will be an ideal response?
The firm whose short-run cost curves are given in Exhibi has a long-run fixed cost of
A. $0. B. $2. C. $3. D. $4.