When a firm shuts down in the short run, it breaks even.
Answer the following statement true (T) or false (F)
False
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When the price level in an economy falls, the demand for bonds and other nonmonetary financial assets rises
a. True b. False Indicate whether the statement is true or false
What happens to the Canadian M2 money supply if there is an excess demand of 100 million euros in the Canadian dollar:euro foreign exchange market and the Canadian central bank intervenes to offset the excess? Assume the M2 money multiplier is 3
a. The Canadian M2 money supply falls by 300 million euros worth of Canadian dollars. b. The Canadian M2 money supply rises by 300 million euros worth of Canadian dollars. c. The Canadian M2 money supply might fall or rise. d. The Canadian M2 money supply rises by 100 million euros worth of Canadian dollars. e. The Canadian M2 money supply falls by 100 million euros worth of Canadian dollars.
Total profit is maximized at the output level at which the:
A. area between the total revenue and total cost curves is greatest. B. vertical distance between the total revenue and total cost curves is minimized. C. total cost and total revenue curves intersect. D. vertical distance between the total revenue curve and the total cost curve is maximized.
Firms are motivated to minimize production costs because:
A. it is the most environmentally friendly way to produce goods. B. least-cost production techniques use the smallest total quantity of resources. C. competitive pressures in the market will drive out higher-cost producers. D. the government provides tax credits and subsidies to low-cost producers.