Refer to the above figure. Economic profits for this firm are
A) negative and equal to P2bcP3.
B) negative and equal to P1bcP2.
C) positive and equal to P2bcP3.
D) positive and equal to P1abP2.
D
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A typical American family sends about _____ percent of its budget on services.
A. 20 B. 32 C. 66 D. 70
Since the mid-1980s, Federal Reserve policies have often been described as attempting
A) accelerated takeoffs. B) sustained growth. C) stalling tactics. D) soft landings.
Economists say that voluntary exchange makes both parties better off. What is the explanation that they offer to back up this conclusion?
Using the multiplier effect, if the government increases purchases of transportation equipment by a certain amount, then total purchases for the economy will ______.
a. decrease by that amount b. also increase by that amount c. increase by more than that amount d. decrease by more than that amount