Refer to the data. If the firm closed down in the short run and produced zero units of output, its total cost would be:
A. zero.
B. $50.
C. $150.
D. $100.
B. $50.
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Which of the following banks is similar to a U.S. investment bank?
A) City banks B) Grossbanken C) Merchant banks D) Cooperative banks
Normally, whenever the central bank lowers the rate it charges banks for overnight loans market rates of interest:
a. are not affected. b. fall at the same rate. c. increase. d. are unstable.
Which of the following is the best example of a precommitment used to overcome time inconsistency
A. Finding a running partner and setting a regular schedule of when you will run together. B. Deciding to save a percentage of each month's paycheck. C. Signing up for a free trial membership at the local gym. D. Buying an alarm clock.
Assume that emissions from electric utilities contribute to pollution in the form of acid rain. Which of the following describes how this affects the market for electricity?
A) The equilibrium in the market is not efficient; the marginal benefit from electricity is greater than the marginal social cost. B) A deadweight loss occurs; at equilibrium the additional social cost of production is greater than the additional benefit to consumers. C) The equilibrium in the market is not efficient; because of the cost of the acid rain, economic efficiency would be greater if more electricity were produced. D) The equilibrium in the market is not efficient; consumer surplus is equal to producer surplus.