Figure 10.5 Federal Outlays, Receipts, and Surplus/Deficit, as a Percent of GDP, 1980-2011
What will be an ideal response?
The United States federal government has operated at a deficit for most of the last few decades, with particularly high deficits in recent years.
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Refer to the payoff matrix above. Which of the following is the iterated elimination of dominated strategies outcome of the game?
A) Middle/High
B) High/High
C) Low/High
D) Low/Middle
When a government intervenes in an economy in a way that influences the relationship between households and businesses, it is:
A. serving the public good. B. reducing social welfare by interfering with the invisible hand. C. serving as an economic actor. D. serving as an economic referee.
Many economists think that, in the long run, the economy generally tends to move toward: a. an accelerating inflation rate
b. a stable price level. c. the natural or full-employment rate of inflation. d. the natural or full-employment rate of unemployment.
Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Quick Buck cheats by reducing its price to $1 while Pushy Sales continues to comply with the collusive agreement, then Quick Buck's economic profit will be ________.
A. $2,000 B. $4,000 C. $6,000 D. $3,000