In the short run, a firm that finds itself earning a loss should compare the market price to which cost in order to determine how to minimize its losses?
A. Marginal costs
B. Fixed costs
C. Average total costs
D. Average variable costs
Answer: D
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Refer to Figure 6-8. Identify the two goods which are complements
A) Good X and Good Y B) Good X and Good Z C) Good Y and Good Z D) It is not possible to distinguish any relationship among the goods.
Figure 11-2
Which graph in Figure 11-2 best reflects a Keynesian's view of the short-run impact of an increase in the personal income tax rate?
a.
1
b.
2
c.
3
d.
4
Economists assume people behave
A) instinctively.
B) rationally.
C) irrationally.
D) greedily.
Suppose you borrow $500 for a year and the lender discounts $75 of interest at the time the loan is made (giving the borrower only $425). The interest rate on this loan is about:
A. 12.5 percent. B. 14.5 percent. C. 17.6 percent. D. 10 percent.