The short-run shutdown price occurs where price equals
A. AVC at any point.
B. MC.
C. AFC at the minimum point.
D. AVC at the minimum point.
Answer: D
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If you work 4 extra hours, and the slope of the curve showing the relationship between your income and work hours is 8, your income will increase by
A) $2. B) $4. C) $12. D) $32.
A general policy of imposing trade restrictions is called
a. protectionism b. import substitution c. quantitative restrictions d. effective protection e. all of the above
Suppose the production of a good results in positive externalities. If output occurs at the intersection of the supply curve and the marginal social benefits curve, then
A. the socially optimal level of output will be produced. B. society will incur a net social cost. C. society will want less produced, and producers will be willing to satisfy that desire. D. there is market failure.
The International View of the Great Depression blames the contraction in the U.S. economy on
(a) the failure of the U.S. markets to permit a fall in aggregate prices under the gold standard or to devalue its exchange rate. (b) exports' and imports' large proportion of total GDP in the U.S. (c) Great Britain abandoning the gold standard. (d) all of the above.