If a firm shuts down, it
A) makes zero economic profit.
B) incurs an economic loss equal to its total variable cost.
C) incurs an economic loss equal to its total fixed cost.
D) makes a normal profit.
E) might make an economic profit, zero economic profit, or incur an economic loss.
C
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If nominal GDP is $10 trillion, and velocity is 10, the money supply is
A) $1 trillion. B) $5 trillion. C) $10 trillion. D) $100 trillion.
When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information b. decisions are being moved to those with stronger incentives to make good decisions c. decisions are being moved to those with more of the relevant information d. decisions are being moved from those with weaker incentives to make good decisions
The automobile industry is
a. in monopolistic competition because brand names are important b. in monopolistic competition because it has economies of scale c. in monopolistic competition for legal reasons d. an oligopoly because each firm must produce a large amount of output before it can achieve low average costs e. an oligopoly for legal reasons
Inmates from the county prison who are on work release are counted as part of the labor force
a. True b. False Indicate whether the statement is true or false