Which of the following statements is correct regarding a firm's decision-making?
a. The decision to shut down and the decision to exit are both short-run decisions.
b. The decision to shut down and the decision to exit are both long-run decisions.
c. The decision to shut down is a short-run decision, whereas the decision to exit is a long-run decision.
d. The decision to exit is a short-run decision, whereas the decision to shut down is a long-run decision.
c. The decision to shut down is a short-run decision, whereas the decision to exit is a long-run decision.
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The United States imports t-shirts because
A) it is a dangerous job to produce them. B) the United States has a lower opportunity cost of production. C) the United States must import goods and services from other countries so that they can develop economically. D) foreign economies have an absolute advantage in their production. E) foreign nations have a lower opportunity cost of production.
One of the primary objectives of the WTO is:
a. to create trade restrictions across the countries. b. to reduce trade barriers created by the different countries. c. to enable certain countries to maintain their autarkic conditions. d. to enable the western countries to emerge as major players in the international trade. e. to redistribute wealth from the first world to the third world countries.
Which of the following is not a correct statement?
a. the United States has twelve Federal Reserve districts. b. less than one-half of U.S. private banks are members of the Federal Reserve System. c. the members of the Board of Governors of the Fed are appointed by the U.S. president for 14-year terms. d. the U.S. Senate must approve any major change in Fed policy.
When businesses earn zero economic profit, they have no incentive to stay in business.
Answer the following statement true (T) or false (F)