The market for maple syrup is perfectly competitive. Suppose that the market is in long-run equilibrium when the market demand for maple syrup increases. After the demand increases, a typical firm will
A) make zero economic profit.
B) make an economic profit.
C) incur an economic loss.
D) exit the market.
B
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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
Use the following graph of an oligopolistic firm.
Suppose all firms within the cartel have identical costs of production. The cartel is earning
A. accounting profit but not economic profit. B. zero economic profit. C. economic profit. D. negative economic profit.
In a two-person repeated game, a tit-for-tat strategy is
a. When each player pursues his or her own self-interest without any cooperation b. When players start off as non-cooperative and then cooperate when one or both players show interest in colluding c. When players start off by cooperating and then mimic the other player's last move d. With neither players defecting
Refer to the information provided in Figure 3.2 below to answer the question(s) that follow.
Figure 3.2Refer to Figure 3.2. Which of the following would be most likely to cause the demand for macaroni and cheese to shift from D0 to D1?
A. a decrease in income, assuming macaroni and cheese is a normal good B. a decrease in the price of macaroni and cheese C. an increase in the quantity demanded for macaroni and cheese D. an increase in the price of flour used to make macaroni and cheese