In the short run, a firm that is incurring losses would always be better off if it keeps producing.
Answer the following statement true (T) or false (F)
False
You might also like to view...
In response to an increase in the wage rate, the substitution effect will cause a person to
A) supply fewer hours of labor. B) supply more hours of labor. C) supply the same hours of labor. D) have a backward bend in her labor supply curve.
Which of the following is correct?
a. The Bureau of Labor Statistics uses data collected from those applying for unemployment insurance to compute the unemployment rate. b. The labor force includes all adults who are able to work. c. Unpaid homemakers are counted as "employed" by the Bureau of Labor Statistics. d. People working part time are counted as "employed" by the Bureau of Labor Statistics.
What are options for monetary easing using interest rate policy instruments when the rate has hit the zero lower bound?
a. At that point, interest rate policy cannot be used. b. Monetary easing can still occur whenever interest rates are greater than zero at the retail level. c. The central bank can increase the money supply, and interest rates can be less than zero. d. Borrowing can be stimulated in ways other than lower rates of interest.
Suppose that the demand for corn is price inelastic. If a technological advance makes corn farms more productive, the equilibrium price of corn will ________ and the farmers' total revenue will ________
A) rise; increase B) rise; decrease C) fall; increase D) fall; decrease