Suppose the pizza at Pizza House and Little Weezer's are fairly close substitutes. If Pizza House raises their price 20%, and Little Weezer's keeps their price unchanged, which is most likely to occur?

Answer the following questions true (T) or false (F)

1. There will be no deadweight loss if the marginal benefit to consumers is equal to the marginal cost of production and the sum of consumer surplus and producer surplus is maximized. 2. If marginal benefit is less than marginal cost, output is inefficiently high. 3. The difference between consumer surplus and producer surplus in a market is equal to the deadweight loss.

Which of the following statements about stocks and bonds is true?

A. Stocks pay interest while bonds pay dividends B. One can lose with stocks, but not with bonds C. The U.S. Federal government issues bonds, but not stocks D. Bonds are long term while stocks are short term investments