Baseball teams shut down in the winter. This is an example of
A) permanently leaving the industry because price is less than average fixed cost.
B) temporarily leaving the industry because price is less than average variable cost.
C) temporarily leaving the industry because price is less than average fixed cost.
D) permanently leaving the industry because price is less than average variable cost.
B
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If the demand curve fails to capture all of the benefits of consumption, then the:
A. the equilibrium price will be inefficiently high. B. the equilibrium price will be inefficiently low. C. equilibrium price will be efficient but the equilibrium quantity will be inefficiently large. D. government needs to impose regulations that require more consumption.
Keynes rhymes with
A) beans. B) gains. C) genies. D) none of the above.
Secondary credit provided by the Fed is designed for:
A. foreign banks. B. banks that want to borrow without putting up collateral. C. banks who qualify for a lower interest than what is available under primary credit. D. banks that are in trouble and cannot obtain a loan from anyone else.
Which of the following is not one of the three basic situations in which regulation is imposed?
A. price fixing B. natural monopoly C. externalities D. imperfect information