In the short run, if a firm's price is greater than its AVC but less than its ATC, the firm should:
a. shut down immediately because it is generating an economic loss.
b. shut down temporarily because it is generating an economic loss.
c. continue operating because it is generating an economic profit.
d. continue operating even though it is generating an economic loss.
d
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The demand for labor curve shows the relationship between _________
A. the quantity of labor employed and firms' profits B. all households' willingness to work and the real wage rate C. the quantity of labor businesses are willing to hire and the real wage rate D. the labor force and the real wage rate
In reference to the federal income tax system, a tax bracket is
A) the income range within which a tax rate applies. B) the estimated amount of federal income tax firms withhold from their employees' paychecks. C) the formula the federal government uses to determine the dollar amount of the personal exemption and the amounts taxpayers are allowed for deductions from their incomes. D) used to determine the average tax rate.
Specialization and trade benefits all participants only if: a. They specialize in those things they have both a comparative and absolute advantage in
b. They specialize in those things they have a comparative advantage in, even if they have an absolute disadvantage. c. They specialize in those things they have an absolute advantage in, even if they have a comparative disadvantage. d. Traders have the same opportunity cost of production
The OPEC crisis caused the aggregate demand curve to shift to the left
Indicate whether the statement is true or false