In the short run, a firm should shut down if its economic loss from operating exceeds its total fixed cost
a. True
b. False
Indicate whether the statement is true or false
True
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The volatility of stock prices, particularly in the short-run, may, according to Professor S. Grossman, be due to
a. large numbers of stockholders fearful of losing wealth who sell at some predetermined level. b. some traders being better informed than others about real financial conditions. c. either or both of the above. d. the increasing use of stock options as compensation for corporate executives.
Refer to Figure 2-8. What is the opportunity cost of one dozen roses?
A) 0.4 dozen orchids B) 2.5 dozen orchids C) 7.25 dozen orchids D) 16 dozen orchids
The official poverty income threshold in the United States is
A. based on the cost of a budget that includes food, clothing, and shelter. B. never adjusted for the effects of inflation. C. the same for all families independent of the number of people in the family. D. calculated as three times the cost of a minimally acceptable diet for a family.
The market mechanism satisfies all consumer desires and maximizes business profits.
Answer the following statement true (T) or false (F)