As long as existing firms ________ in an industry, some existing firms will exit the industry, causing the industry ________ curve to shift to the left.
A. break even; supply
B. break even; demand
C. incur economic losses; supply
D. incur economic losses; demand
Answer: C
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One reason why better-looking workers may have higher earnings is that physical attractiveness is correlated with intelligence
a. True b. False Indicate whether the statement is true or false
Frictional unemployment is
a. not inevitable; rather, it can be reduced to zero by well-designed public policies. b. not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance. c. inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms. d. inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium.
Other things the same if reserve requirements are decreased, the reserve ratio
a. decreases, the money multiplier increases, and the money supply decreases. b. increases, the money multiplier increases, and the money supply increases. c. decreases, the money multiplier increases, and the money supply increases. d. increases, the money multiplier increases, and the money supply decreases.
Marginal cost is equal to
A. change in total cost divided by change in output. B. change in total variable cost divided by change in output. C. total variable cost divided by quantity of output. D. Both A and B are correct.