Think of the economy as a pie, where public choices influence both the size of the pie and how it is divided to various interests in society. Special-interest legislation makes the pie bigger, while legislation to create traditional public goods such as roads, schools, and the justice system leads to fights over the pie, causing some of it to fall on the floor and be lost

The firm that practices price discrimination needs to be able to distinguish ________; the seller also has to be able to prevent the buyers in the lower-priced market from ________ the product to those in the higher-priced market.

Fill in the blank(s) with the appropriate word(s).

Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.

A. lower; potential B. higher; higher C. lower; higher D. higher; potential