If the price of its product just equals the average variable cost of production for a competitive firm,
A) total revenue equals total fixed cost and the firm's loss equals total variable cost.
B) total revenue equals total variable cost and the firm's loss equals total fixed cost.
C) total fixed cost is zero.
D) total variable cost equals total fixed cost.
B
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If two investments are perfectly negatively correlated:
A. diversification is not effective at reducing risk. B. bets are perfectly hedged and risks are canceled out. C. diversification reduces risk without changing the expected payoff. D. diversification reduces both risk and the expected payoff.
When the supply of real loanable funds is upward-sloping and the demand for real loanable funds is downward-sloping, an increase in the budget deficit causes aggregate demand to:
a. Rise by more than the deficit. b. Rise by less than the deficit. c. Rise by an amount more or less than the deficit, depending on the elasticity of supply and demand. d. Fall by an amount less than the deficit. e. Rise by an amount equal to the deficit.
In 2015, the unemployment in the U.S. was
A) 5%. B) 11%. C) 5.4%. D) 4.6%.
The graph shown demonstrates a tax on sellers. What is the amount of tax revenue being generated from the tax?
A. $310 B. $135 C. $80 D. $150