A firm operating in a perfectly competitive industry will shut down in the short run but earn losses if the market price is less than that firm's average variable cost
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following countries have used adjustments to the required reserve ratio as a primary tool of monetary policy?
A. United States B. China C. Mexico D. India
Suppose that X and Y are substitutes. If the price of Y increases, how will this change the market equilibrium for X?
a. Equilibrium price and quantity both decline. b. Equilibrium price declines, and equilibrium quantity rises. c. Equilibrium price rises, and equilibrium quantity falls. d. Equilibrium price and quantity both rise.
The law of diminishing marginal utility states that as more and more units of a good or service are consumed, total utility becomes smaller and smaller
Indicate whether the statement is true or false
You read online that, at current rates of production, the yearly world supply of food is sufficient to feed the projected 2050 population of earth, but that after 2050 there will be massive starvation. This prediction appears to assume that:
A. the long-run supply of food is perfectly elastic. B. the short-run supply of food is perfectly elastic. C. the long-run supply of food is perfectly inelastic. D. the short-run elasticity of supply of food is greater than long-run elasticity of supply.