Which of the following formulas indicate that a firm should shut down?
a. (P × q) > VC
b. (P × q)/q < VC/q
c. (P × q) > VC/q
d. (P × q)/q < VC
b. (P × q)/q < VC/q
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The figure above shows a nation's production possibilities frontier for apples and oranges
a) What combination of goods is represented by point A? b) What combination of goods is represented by point B? c) Which point represents an unattainable combination of goods?
This agency acts like an international lender of last resort to cope with financial instability
A) World Bank B) European Central Bank C) IMF D) International Bank for Reconstruction and Development
Assume that policy makers are pursuing a fixed exchange rate regime and that the economy is initially operating at the natural level of output. Which of the following will occur as a result of a revaluation?
A) The real exchange rate will be permanently higher in the medium run. B) The real exchange rate will be permanently lower in the medium run. C) The effects of this revaluation on the real exchange rate will be ambiguous in the medium run. D) The real exchange rate will be unchanged in medium run. E) The nominal exchange will initially fall in the short run and then increase in the medium run.
Public goods are goods that we all agree are useful and therefore are all willing to pay for. This implies that there is no efficiency problem in the production of public goods.
Answer the following statement true (T) or false (F)