When determining whether to shut down in the short run, a competitive firm should ignore (i) fixed costs. (ii) variable costs. (iii) sunk costs
a. (iii) only
b. (i) and (iii) only
c. (ii) only
d. (i), (ii), and (iii)
b
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The purchase of Michelin Tire Company by General Motors is an example of a horizontal merger
a. True b. False Indicate whether the statement is true or false
Suppose the U.S. supply of loanable funds shifts left. This will
a. increase U.S. net capital outflow and increase the quantity of loanable funds demanded. b. increase U.S. net capital outflow and decrease the quantity of loanable funds demanded. c. decrease U.S. net capital outflow and increase the quantity of loanable funds demanded. d. decrease U.S. net capital outflow and decrease the quantity of loanable funds demanded.
If there is no change in demand that will cause a change in the price, then the supply for the good is
A. inelastic. B. perfectly elastic. C. perfectly inelastic. D. perfectly unit elastic.
You are closely following the elections in your country this year
The two main candidates who are running for president belong to the two biggest parties that are on opposing ends of the political spectrum—the Conservative Right and the Left Alliance. There are also a few independent candidates. You have decided that you will cast your vote depending on each candidate's stance on various issues like foreign policy, gun rights, taxes, gay marriage, and healthcare. As the campaigns heat up, you notice that the viewpoints expressed by both parties seem to converge to the center rather than being extreme left or right opinions. Given that the candidate with the highest number of votes wins the elections, what do you think could explain this convergence?