Firms that shut down must be earning negative profits in the short run.
Answer the following statement true (T) or false (F)
True
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Which of the following facilitates investor diversification by purchasing a range of stocks or bonds from different companies?
a. Mutual fund b. Financial intermediary c. Public company d. Investment banker
In the debate over passing a bill providing a minimum guaranteed price for corn, a congressman argued, “Minimum guaranteed prices always cause a disruption of the natural equilibrium of a market, ultimately costing taxpayers money.” Evaluate this
statement. Please provide the best answer for the statement.
Assume the United States is currently running a current account deficit. The most effective way of eliminating this current account deficit would be to temporarily ________ government purchases and ________ the domestic money supply.
A. increase; decrease B. decrease; increase C. increase; increase D. decrease; decrease
An advantage of capitalism is that
a. It allows the market to self-regulate and clear itself b. It allows a person to follow his or her own self interest c. It allows voluntary transactions, which create wealth d. All of the above