What is the shut-down rule for any firm?
Any firm should shut down if losses are greater than total fixed costs (or when price is less than average variable cost; or when total revenue is less than total variable cost) in order to minimize losses in the short run.
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The Lucas critique is an attack on the usefulness of
A) conventional econometric models as forecasting tools. B) conventional econometric models as indicators of the potential impacts on the economy of particular policies. C) rational expectations models of macroeconomic activity. D) the relationship between the quantity theory of money and aggregate demand.
An appreciation of the Japanese yen would shift the Japanese aggregate demand curve inward
a. True b. False Indicate whether the statement is true or false
Assume the demand for sugar decreases and the supply of sugar increases. Which of the following outcomes is certain to occur?
A. The equilibrium quantity of sugar will rise. B. The equilibrium price of sugar will fall. C. The equilibrium quantity of sugar will fall. D. The equilibrium price of sugar will rise.
Use the figure below: 
If good skiing costs $100 per day and horseback riding costs $50 per day, if you have $250 to spend how many days of horseback riding could you do?
A. 4 days B. 2 days C. 1 day D. 5 days