If the firm in the given graph were to produce Q1 and charge P3, the area A would represent:
These are the cost and revenue curves associated with a firm.
A. consumer surplus.
B. producer surplus.
C. deadweight loss.
D. profits.
B. producer surplus.
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Assuming a long-run aggregate supply curve, a decrease in taxes results in ________ in output and ________ in price level
A) no change; an increase B) an increase; no change C) a decrease; a decrease D) no change; a decrease
Candidates in a two-person race express very similar positions a few weeks before the election. A voter complains that there is not much difference between the two candidates. What this voter misunderstands or ignores is that
A) each candidate has an incentive to be like the other. B) each candidate has an incentive to be different from the other. C) each candidate has an incentive to be perceived as in the "middle of the road," and if both candidates correctly act on this incentive they will end up sounding alike. D) this simply happens sometimes. E) none of the above