The cost disease of the service sector is evidenced by
a. a failure of the market mechanism.
b. increased quality of public and private services.
c. dramatic increases in municipal budget burdens for education, health care, and police and fire protection.
d. the increased productivity in the services area.
c
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A fiscal policy is considered sustainable when the debt-to-GDP ratio is ________, and it is considered unsustainable when the debt-to-GDP ratio is ________
A) constant; increasing or decreasing B) constant or decreasing; increasing C) decreasing; constant or increasing D) constant or increasing; decreasing
Figure 6.3 shows the cost structure of a firm in a perfectly competitive market. Assume the market price is $3 and the firm is currently producing 100 units. If the firm produces zero units in the short run, it will reduce its economic loss by:
A. $300. B. $600. C. $900. D. $1,200.