When supply rises and demand remains the same, equilibrium price ______ and equilibrium quantity ________.

Refer to Figure 8.2. As the firm makes its long-run adjustment, which must be true?

A) It takes advantage of increasing returns to scale. B) It suffers from decreasing returns to scale. C) It takes advantage of increasing marginal product. D) It takes advantage of economies of scale. E) It takes advantage of diseconomies of scale.

Which of the following would be considered a component of government purchases?

a. Both d and e b. All of the following c. Welfare payments d. Police salaries e. Social security payments