Tara sells her organic carrots in a perfectly competitive market for a price that is just higher than her minimum average variable cost of production, but lower than her minimum average total cost of production. Which of the following statements is then true?
a. Although she is currently incurring a loss, she could restore profitability by advertising her carrots.
b. She can minimize her losses by shutting down her operations now.
c. She is incurring a loss, because price is less than ATC.
d. She is earning a profit, because price is above AVC.
Ans: c. She is incurring a loss, because price is less than ATC.
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Unemployment caused by changes in technology is called ________ unemployment
A) structural B) frictional C) techno D) cyclical
Among the factors that create a deadweight loss and inefficiency are
A) minimum wages, but not taxes. B) rent ceilings, but not taxes. C) taxes, but not minimum wages or rent ceilings. D) minimum wages, rent ceilings, and taxes.
Reserves equal
A) deposits with the Fed plus holdings of U.S. government securities. B) currency in circulation plus vault cash. C) deposits with the Fed plus vault cash. D) currency outstanding plus currency in circulation.
Since the Federal Reserve was established in 1913, the U.S. has experienced three periods of high inflation and each was preceded and accompanied by a period of sharp decline in the money supply
a. True b. False Indicate whether the statement is true or false