If a purely competitive firm shuts down in the short run:
A. its loss will be zero.
B. it will realize a loss equal to its total variable costs.
C. it will realize a loss equal to its total fixed costs.
D. it will realize a loss equal to its explicit costs.
Answer: C
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Refer to the table below. Julia's opportunity cost of making a pie is: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. 60 cakes B. 6/5 of a cake C. 5/6 of a cake D. 6 cakes
Two goods are complements if an increase in the price of one good leads to an increase in demand for the other
Indicate whether the statement is true or false
Classify the following as positive economics statements or normative economics statements
a) An increase in an individual's income increases consumption, but by an amount less than the increase in income. b) The government should undertake the responsibility of providing healthcare to all its citizens. c) A trade deficit can be advantageous to an economy. d) An increase in net exports has a positive effect on a country's national income. e) The gross domestic product of India is increasing at 5% annually.
Which of the following pairs is the best example of complements?
a. Coffee and tea. b. DVDs and tapes. c. Hiking boots and athletic shoes. d. Tortillas and salsa.