Refer to the above figure. A budget deficit occurs when real national income is

A) Y3.
B) Y1.
C) Y2.
D) None of the above: cannot be determined given the information.

B

Economics

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Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. What is Ernie's total variable cost?

A) $2,400 B) $2,000 C) $1,600 D) $800

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Collusion is common in oligopoly and monopolistically competitive industries

Indicate whether the statement is true or false

Economics