If a perfectly competitive firm shuts down in the short run, its total cost equals zero
a. True
b. False
B
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Real interest rates were negative during most of the
A) 1960s. B) 1970s. C) 1980s. D) 1990s.
The most numerous or plentiful firms in the United States are found in this form of business
A) partnership. B) proprietorship. C) monopoly. D) corporation.
Explain why bond prices and interest rates are inversely related.
What will be an ideal response?
Julie works at a local hat factory for $12 an hour and typically works 40 hours a week. The company threatens layoffs, so Julie and the others agree to a pay cut. Julie now earns $10 an hour and works every hour over 40 that her boss will let her. Julie's response to this pay cut was to work:
A. more, demonstrating a dominant income effect. B. more, demonstrating a dominant price effect. C. less, demonstrating a dominant income effect. D. less, demonstrating a dominant price effect.