Flora's Flowers operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = $10, AVC = $5, and the price per unit is $7.50 . In this situation,
a. Flora earns positive profits in the short run
b. Flora will shut down in the short run
c. Flora's supply curve will shift to the left
d. Flora's supply curve will shift to the right
e. Flora earns negative profits in the short run but will remain open
E
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________ quantity theory of money suggests that the demand for money is purely a function of income, and interest rates have no effect on the demand for money
A) Keynes's B) Fisher's C) Friedman's D) Tobin's
The experience of the Volcker disinflation of the early 1980s
a. generally increased estimates of the sacrifice ratio. b. generally decreased estimates of the sacrifice ratio. c. clearly refuted the predictions of the proponents of rational expectations. d. clearly refuted the predictions of the opponents of rational expectations.
Given the following information that includes all costs of the firm, we know that:Value of final sales$1,000Rent$200Compensation to employees$500Interest$500
A. income does not equal the value of final output. B. profit is -$200. C. there is a loss that must be subtracted from final sales so that income equals output. D. profit is $200.
The World View article titled "The Education Gap between Rich and Poor Nations" says that a greater percentage of people graduate from high school in rich nations than in poor nations. This investment in human capital can lead to
A. Lower productivity. B. A bigger capital stock. C. Lower labor quality. D. Increased output per worker.