Firms that are "breaking even" are
A. earning zero economic profits.
B. shutting down in the short run.
C. earning less than a normal rate of return.
D. All of the above are correct.
Answer: A
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A profit-maximizing, single-price monopoly must lower its price in order to sell more output
a. True b. False
The U.S. switched from being a creditor nation to a debtor nation in:
a. the 1970s b. the 1980s c. the 1990s d. 2008-2009
Which of the following can be called a "crowding-out" effect?
A. Government borrowing crowds out private saving. B. Exports crowd out government borrowing. C. Government borrowing crowds out private investment. D. Private consumption crowds out private investment.
The long-run aggregate supply curve
A. shows that long-run aggregate supply equals potential real Gross Domestic Product (GDP). B. is very sensitive to changes in the price level. C. slopes up and to the right. D. shows that at higher prices, potential real Gross Domestic Product (GDP) increases.