Which of the following firms is most likely to shut down?
a. TicToc, Inc. has a total revenue of $500,000 and variable costs of $450,000
b. LWT, Inc. has a total revenue of $3 million and variable costs of $3.2 million.
c. Sparkle, Inc. has a total revenue of $4 million and variable costs of $3.7 million.
d. Motif, Inc has a total revenue of $6 million and variable costs of $6 million.
b. LWT, Inc. has a total revenue of $3 million and variable costs of $3.2 million.
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What is meant by the term "rational ignorance"?
A) It refers to the fact that policymakers and their constituents have different ideas of what it means to behave rationally and each party deliberately ignores the other's view. B) It refers to the absence of a negative incentive, such as levying a fine for not voting, which results in low voter turnout. C) It refers to a situation where one policymaker deliberately approves legislation he does not support in exchange for a future favorable vote for his own cause. D) It means the lack of an economic incentive for voters to become informed about a pending vote.
The largest component of government spending is for interest on the national debt
Indicate whether the statement is true or false
The basics of the ERM in the EC provided for:
A) flexible exchange rates and free capital flows. B) fixed exchange rates based on the U.S. dollar. C) gradual conversion to a common currency (the euro). D) fixed exchange rates based on a weighted basket of currencies formula.
The cyclical deficit:
A. is the deficit that exists if the economy is at potential income. B. rises as the economy moves below potential output. C. is not affected by changes in actual income or potential income. D. rises as the economy expands and falls as the economy contracts.