If a firm earns short-run losses, it exits in the long run.
Answer the following statement true (T) or false (F)
True
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According to Gordon, all of the following are important ingredients in the recent U.S. housing bubble EXCEPT
A) low interest rates. B) saving glut. C) financial innovation. D) trade deficit.
If a firm's total costs are $80 when 10 units of output are produced and $90 when 11 units of output are produced, the marginal cost of the 11th unit is
A) $1. B) $5. C) $8.09. D) $10.
The discount rate
A) is determined by markets forces of demand and supply in the market for bank reserves. B) is set by the Board of Governors. C) is determined by investment banks. D) is determined by market forces of demand and supply in the credit market.
With a tax of $2,000 on $30,000 of income, and $2,000 on $70,000 of income, we can describe the structure of this tax as:
A. Progressive B. Proportional C. Regressive D. Marginal