Hardcover books usually cost much more to purchase than do otherwise identical paperback editions of the same book because
A) hardcover books typically last longer.
B) the demand for hardcover books is typically less elastic than the demand for paperback books at the same price.
C) the marginal cost of producing hardcover books typically rises as output increases.
D) the marginal cost of producing paperback books typically falls as output increases.
E) the mergers in the book-publishing industry have encouraged price discrimination.
Question 2
The federal government budget has generally been in a deficit for the past several decades because
A) budget deficits promote full employment.
B) every year during those decades was a recession year in which expansionary fiscal policy was called for.
C) military expenditures were increased steadily throughout those decades.
D) political pressure on Congress to increase taxes and to balance the budget were less effective than political pressure to increase expenditures.
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