A firm will shut down in the short run if
A. MR < AVC.
B. MR > AVC.
C. AVC < AFC.
D. P > MC.
Answer: A
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All of the following would cause exports to decline, except:
a. a depreciation of the domestic currency. b. a decline in foreign income. c. stricter government regulations on international trade. d. a decline in foreign preferences for domestic goods. e. foreign import quotas on domestic products.
Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2011, he employed 5 bakers who produced a total of 200 cakes each day. In 2012, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity
a. decreased by 2.33%. b. increased by 2.33%. c. increased by 3.75%. d. increased by 24.50%.
A good like water has few substitutes and takes up little of our income to purchase. As a result, its demand is likely to be
A. perfectly elastic. B. inelastic. C. elastic. D. unit elastic.
The U.N.'s Millennium Aid Goal is for nations to increase their foreign aid levels to 0.7 percent of donor country GDP.
Answer the following statement true (T) or false (F)