Firms are ________ with an economic profit of zero, they will ________ in the industry because they ________ be better off in another industry

Which of the following multiplier concepts is most important from the point of view of devising an activist policy?

A) the income and money-creation multipliers B) the dynamic multipliers, that is the timing of multiplier effects given a policy change C) the long-term multipliers, that is the total effect from several time periods given a policy change D) the money-creation multiplier

When car dealerships post high prices for their cars and then negotiate deals based on their estimate of how much each person will pay,

a. the dealership will lose revenue b. marginal revenue and marginal cost are being used to set prices and output c. few dealerships will be able to survive d. rent-seeking behavior will lead new dealerships to enter the market e. this is a form of price discrimination