Refer to the above figure. The above figure shows the cost structure of a firm producing an information product. Which curve represents average total cost?

Which of the following statements would MOST accurately describe government spending between 1970 and 2006?

a. State and local governments spend more on goods and services than the federal government, but the federal government spends more in total than state and local governments. b. As a percentage of GDP, federal government spending on goods and services increased rapidly and by 2006, the federal government spending on goods and services was about twice as high as state spending on goods and services. c. As a percentage of GDP, federal government spending has been significantly reduced, which as forced state and local government total spending to increase dramatically to accommodate these cuts. d. As a percentage of GDP, both federal and state and local government total spending have doubled.

The false belief that past outcomes affect future events is known as ______.

a. the endowment effect b. the gambler’s fallacy c. the law of diminishing marginal utility d. the ultimatum game