Describe the scope of economic profit in the long run for a perfectly competitive firm

Fiscal policy analysis indicates that large tax increases during a severe recession will result in

a. an increase in the incentive to earn and the maintenance of a balanced federal budget. b. higher tax revenues and an expansion in government spending. c. smaller budget deficits, which will speed an economic recovery. d. a reduction in aggregate demand and a worsening of the recession.

Best Grapes is a new winery that wants to attract new customers. The managers of Best Grapes advertise the following, "Best Grapes: The Best Value Wine Money Can Buy." If Best Grapes wine is really of poor value, this is an example of ________ a(n) ________ good.

A) greenwashing; credence B) falsely advertising; credence C) falsely advertising; experience D) greenwashing; experience