When price is below average variable cost, a firm in a competitive market will
a. shut down and incur fixed costs.
b. shut down and incur both variable and fixed costs.
c. continue to operate as long as average revenue exceeds marginal cost.
d. continue to operate as long as average revenue exceeds average fixed cost.
a
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Which of the following is NOT a goal of financial regulation?
A) ensuring the soundness of the financial system B) reducing moral hazard C) reducing adverse selection D) ensuring that investors never suffer losses
Transfer payments are payments that are:
A. made to firms in order to transfer goods and services to the government. B. payments made to households that can then be spent by the households. C. made in market transactions in order to get the seller to transfer the goods or services to the buyer. D. made in order to obtain public goods or services.
What are tax loopholes and what are their effects?
The distribution of income primarily determines which of the fundamental economic questions?
A) What goods and services are to be produced? B) How the goods and services are to be produced? C) Who will receive the goods and services produced? D) How will the economy be planned?