If a struggling perfectly competitive furniture store in Detroit shuts down, it incurs an economic loss equal to its
A) marginal cost.
B) total fixed cost.
C) total variable cost.
D) average variable cost.
E) average total cost.
B
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A good can serve as money only if
A) citizens accept the good as a means of payment for transactions and debts. B) government mandates that the good must be accepted in payment of debts. C) it is declared by authorities to be legal tender. D) it has intrinsic value or if it is backed by precious metals.
Andrea would be considered unemployed if she is
a. working at a part-time job but is looking for a full-time job. b. absent from her regular job as the result of illness. c. working at a full-time job but is looking for a part-time job. d. not working and is looking for a part-time job.
A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies
a. enhance equality. b. enhance efficiency. c. increase the reward for working hard. d. All of the above are correct.
Which is not considered an “anticompetitive practice”?
A. Firms threaten to destroy competitors through innovation. B. A firm forces competitors to compete on prices. C. A firm prevents the entry of new rivals. D. Firms share intellectual property that may be helpful for research and development.