A short-run decision by a firm to not produce anything during a specific period is referred to as a(n):
A) lockout.
B) shutdown.
C) buyout.
D) exit.
B
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Use the following figure to answer the next question.
In the figure, AD2 and AS2 represent the original aggregate supply and demand curves. If Q3 is full-employment output, then AD2 and AS1 best represent a period of ________.
A. hyperinflation B. expansion C. low unemployment D. stagflation
A commercial bank puts the funds it receives from various sources into
A) securities, cash assets and loans. B) loans, notes and coins in the bank's vault and deposits. C) reserves, deposits and loans. D) securities, cash assets and deposits.
Because monopolists charge a price in excess of marginal cost, it must be the case that monopolists:
A. earn a negative economic profit. B. produce more than the socially optimal level of output. C. earn a positive economic profit. D. produce less than the socially optimal level of output.
If a shortage exists in a market, the natural tendency is for:
A. price to increase. B. quantity supplied to decrease. C. demand to increase. D. no change in the market.