This school of thought argues that because people anticipate the consequences of announced government policy and incorporate these anticipated consequences into their present decision making, people end up undermining the government policy. What is it?

Which of the following is TRUE about a perfect price discriminating monopolist?

A) Price is greater than marginal revenue. B) Price always exceeds marginal cost. C) The firm makes zero economic profit. D) The firm produces the efficient level of output.

An improvement in technology

a. will always result in a parallel shift of the production possibilities frontier b. will never result in a parallel shift of the production possibilities frontier c. will be indicated as a movement along the production possibilities frontier d. will shift the production possibilities frontier outward but not necessarily to a parallel position e. may not shift the production possibilities frontier