If the price is less than a perfectly competitive firm's minimum average variable cost, the firm
A) makes an economic profit.
B) operates and incurs an economic loss equal to total fixed cost.
C) operates and incurs an economic loss equal to average variable cost.
D) shuts down and incurs an economic loss equal to total fixed cost.
E) shuts down and incurs an economic loss equal to average variable cost.
D
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A decrease in foreign income ________ exports of U.S.-made goods, so aggregate demand ________ and the aggregate demand curve shifts ________
A) increases; increases; rightward B) decreases; decreases; leftward C) decreases; increases; rightward D) increases; increases; leftward E) decreases; decreases; rightward
Politicians often argue that a country's standard of living is reduced when it allows imports into the country. Offer an economically sound counter-argument
What will be an ideal response?
In some rural regions of the United States, residents harvest much of their food supplies directly from nature by hunting, fishing, and gathering. With regard to these subsistence activities: a. GDP will overestimate the true value of the nation's production of final goods and services
b. GDP will underestimate the true value of the nation's production of final goods and services only when the income approach is used. c. GDP will correctly estimate the true value of the nation's production of final goods and services. d. GDP will underestimate the true value of the nation's production of final goods and services.
In the vicious cycle of discrimination,
a. a lower wage causes current job discrimination b. a lower wage causes premarket discrimination c. premarket discrimination leads directly to current job discrimination d. employee discrimination causes employer discrimination e. premarket discrimination leads to lower human capital investment