A firm will shut down if
a. P > AVC at all levels of output.
b. P < AVC at all levels of output.
c. AVC > AFC at all levels of output.
d. TR > TC at all levels of output.
e. P < TVC at all levels of output.
b. P < AVC at all levels of output.
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When the Fed buys government securities, banks' reserves ________, the quantity of money ________, and the federal funds rate ________
A) decrease; increases; falls B) increase; increases; falls C) increase; decreases; rises D) decrease; decreases; rises E) increase; increases; rises
The impact of an increase in the gasoline tax on SUV sales is
A) a macroeconomics topic because it deals with taxes. B) a microeconomics topic because it deals with one industry. C) not an economic issue, but rather a political issue. D) insignificant.
To solve the common pool problem in fishing, governments can __________, or __________
a. impose a depletion tax; prohibit resource use entirely b. impose a depletion tax; restrict output c. introduce an offsetting positive externality; prohibit resource use entirely d. use a variable technology; impose a depletion tax e. restrict output; prohibit resource use entirely
The Stolper-Samuelson theorem indicates that, after a country shifts to free trade
A. the real return to the factor used intensively in the import-competing industry will rise in the long run. B. the real return to the factor used intensively in the export industry will rise in the long run. C. the real return to all the resources in an economy will increase. D. the real return to the factor used intensively in the export industry will fluctuate around a long-run trend.