Governments can prevent the overuse of private goods by assigning property rights

Firms in which of the following industries can earn an economic profit in the long run?

A) both monopolistic competition and monopoly B) perfect competition C) monopoly D) monopolistic competition E) monopolistic competition and perfect competition

If a local government collects taxes of $250,000, has $175,000 of government consumption expenditures, makes transfer payments of $75,000, and has no interest payments or investment, its budget would

A) show a surplus of $100,000. B) show a surplus of $75,000. C) be in balance with neither a surplus nor a deficit. D) show a deficit of $75,000.