If a firm's short-run total cost curve lies above its total revenue curve at all output levels, the firm should
a. always shut down in the short run
b. always operate in the short run
c. operate in the short run if the maximum operating loss is less than its total fixed cost
d. operate in the short run if the minimum operating loss is less than its total fixed cost
e. operate in the short run if the average operating loss is less than its total fixed cost
D
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Refer to above figure. In autarky, Country P was producing at point 5. With trade, would its production point be found above or below point 5? Explain why
What must happen in the K/L intensity ratio in the production of each of the products in this country when moving from autarky to free trade?
Which national income account should be examined to discover trends in the after-tax income that people have to save and spend?
Suppose the money multiplier in the United States is 2.5. If the Fed wants to reduce the money supply by 1,500 it should:
A. raise the discount rate by 2 percentage points. B. buy government securities worth 600. C. sell government securities worth 600. D. raise the required reserve ratio to 0.2.
When money is the basic measure of economic value, it serves as:
A. a store of value. B. bank reserves. C. a unit of account. D. a medium of exchange.