Which of the following is true if a firm shuts down? i. The price is less than minimum average variable cost. ii. The firm is able to avoid an economic loss. iii. The firm incurs a loss equal to its total variable cost
A) i only
B) i and ii
C) i and iii
D) iii only
E) ii only
A
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If speculators bid up the value of the U.S. dollar in the market for foreign exchange, then
a. U.S. goods become more expensive relative to foreign goods so aggregate demand shifts right. b. U.S. goods become less expensive relative to foreign goods so aggregate demand shifts right. c. U.S. goods become more expensive relative to foreign goods so aggregate demand shifts left. d. U.S. goods become less expensive relative to foreign goods so aggregate demand shifts left.
A futures contract is essentially the same thing as a forward contract.
a. true b. false
The break-even point refers to
A. a point at which planned real consumption is greater than real disposable income. B. the point at which planned real consumption equals real disposable income. C. a zero amount of autonomous consumption. D. the maximum amount of dissaving a person can experience.
If taxes depend on income, then the absolute value of the tax multiplier ________ it would be if taxes were a lump-sum amount.
A. is equal to what B. is larger than C. is smaller than D. could be either larger than or smaller than