If a firm's total variable cost exceeds its total revenue, the firm should stop production by shutting down temporarily
Indicate whether the statement is true or false
TRUE
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A successful compensation scheme
A) must induce effort from workers and ensure that both employer and employees benefit. B) must allow employees to participate in a firm's profits. C) must pay workers with comparable skills a comparable wage. D) must enable workers to enjoy a certain standard of living and must enable employers to earn a normal rate of return.
A tool for managing interest-rate risk that requires exchange of payment streams is a
A) futures contract. B) forward contract. C) swap. D) micro hedge.
The above figure shows the isoquants for producing steel. When producing between 10,000 and 20,000 tons there are
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) economies of scale.
Why did John Maynard Keynes declare that aggregate demand was "inherently unstable"?
a. "Investment decisions were often guided by unpredictable animal spirits of business expectations." b. "Aggregate demand was measured incorrectly for decades." c. "Aggregate demand is not affected by any government action." d. "An federal expansionary policy is not a proper tool for stimulating the economy."