When there are credit market frictions, Ricardian equivalence may not hold because
A) consumers cannot understand the implications of the government budget constraint.
B) a tax cut in the present with a future increase in taxes works effectively like a loan.
C) an increase in government saving is matched one-for-one by a decrease in private saving.
D) social security is fully-funded.
B
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Average revenue minus average total cost equals
a. total economic profit b. total accounting profit c. a normal profit d. economic profit per unit of output e. marginal cost
A cartel is: a. a group of firms that collude to produce a monopoly output
b. a group of firms that collude to produce the market equilibrium output. c. a group of firms that collude to charge the market equilibrium price for their output. d. a group of firms that collude to earn normal profits.
Refer to the figure below. If Cory chooses A, then Jess's best response is: 
A. to choose A. B. to choose the cell in which Jess's payoff is 10. C. to choose B. D. non-existent.
The marginal propensity to consume (MPC) is _____
Fill in the blank(s) with the appropriate word(s).