A perfectly competitive firm will operate and incur an economic loss in the short run if
A) the loss is smaller than its total fixed costs.
B) it knows it can recoup the loss in the long run.
C) shareholders do not know about the loss.
D) the loss can offset future profits.
A
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The portion of net exports determined by income in foreign countries is
A) induced net exports. B) autonomous net exports. C) total net exports. D) always equal to zero.
In the monetary small open-economy model with a flexible exchange rate, an increase in the foreign price level decreases
A) domestic output, but has no effect on the domestic price level or the nominal exchange rate. B) the domestic price level, but has no effect on domestic output or the nominal exchange rate. C) the nominal exchange rate, but has no effect on domestic output or the domestic price level. D) the domestic price level and the nominal exchange rate, but has no effect on domestic output.
Which of the following was NOT used to finance the Civil War (1861–1865)?
(a) Taxation (b) Borrowing (c) Printing money (d) Large voluntary contributions from individuals opposed to slavery
In general, when people talk about investing, they mean that they:
A. hold stocks or bonds. B. have lent their money to someone who will use it to buy physical capital. C. have put money in the stock market. D. All of these statements are true.