The dollar sum of costs that an insured individual must pay before the insurer begins to pay would be considered:

Refer to Figure 12-13. Suppose the prevailing price is P1 and the firm is currently producing its loss-minimizing quantity. If the firm represented in the diagram continues to stay in business, in the long-run equilibrium

A) it will expand its output to Q2 and face a price of P2. B) it will expand its output to Q3 and face a price of P1. C) it will continue to produce Q1 but faces the higher price of P2. D) it will reduce its output to Q0 and face a price of P0.

The Budget Enforcement Act of 1990: a. was a package of spending cuts and tax increases designed to reduce budget deficit

b. succeeded in balancing the budget cyclically. c. succeeded in balancing the budget within two years. d. identified defense and international programs as the only two areas of potential spending cuts. e. gave the President the authority to make unilateral spending cuts to balance the budget.