In the short run, if price falls below a firm's minimum average total cost, the firm should shut down
Indicate whether the statement is true or false
FALSE
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Is it possible for an input to have a negative marginal product?
What will be an ideal response?
Which of the following is CORRECT? The demand for money
A) increases as real GDP increases. B) decreases as the price level increases. C) depends on the quantity of money. D) increases when the nominal interest rate rises.
The entry of new firms into a competitive industry in the long run has the effect of
a. driving up long-run equilibrium price b. eliminating economic profits c. reducing equilibrium quantity d. making the demand curve facing each firm more inelastic e. shifting the cost curves for each firm by an amount equal to total cost divided by the number of firms
The primary function of the World Bank is to:
a. lend money to the World Trade Organization. b. provide loans to countries experiencing huge budget deficit. c. finance economic development in poor countries. d. assist countries experiencing balance of payments deficits. e. finance the fiscal stabilization program of the U.S. government.