A firm is indifferent between staying in business and shutting down in the short run when, at the loss-minimizing level of output,
a. total revenue equals total cost
b. average total cost is at its minimum
c. total revenue exceeds total cost
d. total revenue equals total variable cost
e. total variable cost equals total cost
D
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Most changes in tax laws tend to be small changes because _____
a. the organizing costs of large coalitions are too high b. logrolling is easier when tax laws effect only a small number of individuals c. special interests are constantly demanding changes that will benefit them d. of the rules of the Senate
Along a bowed-out production possibilities frontier, as more of one good is produced,
a. the opportunity cost of producing that good remains constant b. the opportunity cost of producing that good decreases c. efficiency decreases d. the opportunity cost of producing both goods must remain constant e. technology remains constant
Other things equal, when the Fed raises the reserve requirement, the banking system's excess reserves will fall, the deposit expansion multiplier will decline, and the money supply will decrease
a. True b. False Indicate whether the statement is true or false
One of the key factors that determine an economy’s real GDP is labor productivity, which is a measure of
A. output per hour of work. B. labor force per hour. C. input per hour worked. D. total hours worked.