Assume that the equilibrium price in a perfectly competitive industry is $4.25 . If a firm in this industry produced and sold 10 units with an average total cost of $5.00, what would be the result would be:

The consumer price index (CPI):

a. adjusts for changes in product quality. b. includes separate market baskets of goods and services for both base and current years. c. includes only goods and services bought by typical urban consumer. d. uses current year quantities of goods and services.

Elizabeth is the owner of a small business, and she is 35 years old. She doesn't smoke cigarettes, and she often spends her weekends with her family camping at the local state park. According to public choice theory, which of the following four politicians for a public office would Elizabeth be most likely to vote for in the upcoming election?

a. Politician A proposes increasing the tax on small businesses and using the money to provide additional benefits for the elderly. b. Politician B proposes increasing the tax on small businesses and using the money to improve the camping facilities at the state park. c. Politician C proposes increasing the excise tax on cigarettes and using the money to improve the camping facilities at the state park. d. Politician D proposes increasing the excise tax on cigarettes and using the money to provide additional benefits for the elderly.