If the price of its product falls below the minimum point on the AVC curve, the best a perfectly competitive firm can do is to
A) keep producing and incur an economic loss equal to its total variable cost.
B) keep producing and incur an economic loss equal to its total fixed cost.
C) shut down and incur an economic loss equal to its total variable cost.
D) shut down and incur an economic loss equal to its total fixed cost.
D
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Assume that the supply curve is horizontal because marginal cost is constant at $10. If John, Robert, and Jimmy each value one compact disc at $20 but only Jimmy values a second compact disc, then the total value in this market is $35 if
a. Jimmy’s value for a second compact disc is $0. b. Jimmy’s value for a second compact disc is $5. c. Jimmy’s value for a second compact disc is $10. d. Jimmy’s value for a second compact disc is $35.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
A government program that relies on high barriers to imported goods in order to stimulate domestic production of competing goods is an example of a(n) ________ policy
A) primary-export-led B) import-substitution development C) outward-looking development D) linkage-effect
_____ taxation, either through exemptions, deductions, or credits, that are designed to further some goal of social policy
a. Indexation is a increase in b. Tax expenditures are a reduction in c. Bracket creep is an increase in d. The broadening of the tax base is an increase in