According to the textbook, why didn't the U.S. government mount chronic budget deficits before 1970?
A) Elected officials didn't know how to use the federal budget as a policy tool.
B) Deficits were viewed as an irresponsible moral failure on the part of government.
C) The U.S. had a constitutional balanced budget amendment.
D) For all of the above reasons.
E) For none of the above reasons.
B
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A monopolistic competitor has fixed costs of $100 and marginal costs of $10 per unit. What is its marginal revenue at its equilibrium price and quantity?
a. $10 b. $11 c. $1,100 d. $2,000
Under perfect competition, if an industry is characterized by positive economic profits in the short run:
a. firms will leave the market in the long run and the short-run supply curve will shift outward. b. firms will enter the market in the long run and the short-run supply curve will shift outward. c. firms will enter the market in the long run and the short-run supply curve will shift inward. d. firms will leave the market in the long run and the short-run supply curve will shift inward.