In the short run, a perfectly competitive firm earning negative economic profit
A) is on the downward-sloping portion of its AVC.
B) is at the minimum of its AVC.
C) is on the upward-sloping portion of its AVC.
D) is not operating on its AVC.
E) can be at any point on its AVC.
C
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If a country has a comparative advantage in tea moved from autarky to free trade, this would cause what reaction in the world market?
A. Domestic tea producers would be opposed. B. Foreign tea producers would be opposed. C. Foreign tea consumers would be opposed. D. Foreign producers would be in favor of.
If an asset cannot be sold quickly for cash without much loss of value, it is called:
A. illiquid. B. durable. C. liquid. D. fixed.
The introduction of new technologies to production is ________ source of productivity improvement.
A. the only B. the least important C. no longer a D. the most important
A high unemployment rate most likely means that there is a:
A. high rate of inflation in the economy. B. large GDP gap in the economy. C. low rate of interest in the economy. D. small GDP gap in the economy.