For an efficient outcome, MR must exceed MC
a. True
b. False
Indicate whether the statement is true or false
False
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Refer to Table 2-20. If the two countries specialize and trade, who should export rice?
A) They should both be exporting rice. B) Thailand C) Japan D) There is no basis for trade between the two countries.
Consider a Stackelberg duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi = 2. Based on this information, the consumer surplus in this market is:
A. $36.75. B. $1,352.40. C. $73.50. D. $2,704.80.
The self-interest model of government:
A. suggests that government officials are selfish. B. explains why there are limits on government taxation and spending. C. shows why some government projects take place even if the costs exceed the benefits. D. All of these are correct.