If a firm doesn't make an economic profit, it will shut down
Indicate whether the statement is true or false
False. The firm compares its losses from operating with its losses when shutting down and will shut down if the latter loss is less.
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Increases in the quantity of money can start a ________ inflation and an increase in government expenditure can start a ________ inflation
A) demand-pull; cost-push B) cost-push; cost-push C) cost-push; demand-pull D) demand-pull; demand-pull E) None of the above is correct because increases in the quantity of money are necessary to continue an inflation but cannot start an inflation.
Which of the following statements is correct?
A) assets plus liabilities equal net worth B) assets plus net worth equal liabilities C) assets equal liabilities plus net worth D) liabilities minus net worth equal assets
The firm will shut down in the short run if
A) the price falls below its minimum AVC. B) the market price rises unexpectedly. C) P = MC. D) P = ATC at its minimum.
In 1820 the country with the highest per capita GDP was ______________________. In 1900 the country that ranked #1 in terms of per capita GDP was ___________________ and fifty years later the top ranking was held by _________________________
A) the Netherlands; New Zealand; the United States. B) the Netherlands; Australia; Switzerland. C) the United States; the United States; the United States. D) Austria; Australia; New Zealand.