Assume a firm closes down in the short run and produces no output. Under these conditions:
A. TVC is positive, but TFC and TC are zero.
B. TFC is positive, but TVC and TC are zero.
C. TFC and TC are positive, but TVC is zero.
D. TFC, TVC, and TC will all be positive.
Answer: C
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The growing federal budget deficit in the 1980s was accompanied by a
A. growing trade surplus. B. growing trade deficit. C. shrinking trade deficit. D. shrinking capital account surplus.
When will consumers' surplus overstate the actual gains received by consumers?
a. When allocation decisions are not made on the basis of price. b. When the commodity is not equally divided among consumers. c. When all consumers place the same marginal value on the good. d. When the distribution of goods is Pareto optimal.
Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not. The club purchased the sets. Which method of allocation best describes the choice to purchase the sets?
A) force B) sharing equally C) command D) majority rule E) lottery
At Joey's Lawncutting Service, a lawn mower cannot cut grass without a laborer. A laborer cannot cut grass without a lawn mower
Which graph in the above figure best represents the isoquants for Joey's Lawncutting Service when capital per day is on the vertical axis and labor per day is on the horizontal axis? A) Graph A B) Graph B C) Graph C D) Graph D