Sketch a perfectly competitive firm operating in short-run equilibrium but making economic losses. Put in all the functions necessary to show that the firm should stay in business in the short-run despite the losses. Shade in the area of loss shown by the drawing.
What will be an ideal response?
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The current account shows international transactions in goods and services, the capital account shows international transactions involving the flow of financial assets, and the official reserve transactions account shows movement of international reserves
a. True b. False
Positive economics is a method of inquiry that attempts to explain the observable, and is limited to verifiable statements, while normative economics suggests a course of action that we should take based on a particular set of values and preferences
a. True b. False Indicate whether the statement is true or false
Which one of the following statements is TRUE?
A. The sum of wages lost by all unemployed workers gives an accurate, comprehensive estimate of the total cost of unemployment. B. The existence of unemployment places the economy at a point inside its production possibilities curve. C. The unemployment rate is the percentage of the population not working. D. To be counted as part of the labor force, an individual must be working more than 40 hours a week.
After being introduced in 1999, the euro
A. increased in value through 2008. B. decreased in value through 2008. C. increased in value through 2000 but then decreased in value through 2008. D. decreased in value through 2000 but then increased in value through 2008.