If a manufacturer shuts down in the short run, it must be true that before the shutdown, at all positive output levels,
a. average total cost was less than average variable cost
b. fixed cost was greater than total revenue
c. variable cost was greater than total revenue
d. profit was zero
e. total cost plus total revenue was less than profit
C
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In the figure above, a price of $15 per dozen roses results in
A) a shortage. B) a surplus. C) equilibrium. D) downward pressure on the price of roses. E) an eventual leftward shift of the demand curve and/or rightward shift of the supply curve.
What was the typical policy of the British colonies toward the practice of "squatting" or freely settling and cultivating the land without any formal transfer of ownership?
(a) Squatting was encouraged by colonial officials as a way to encourage settlement of the land. (b) Squatting was discouraged by colonial officials because of the legal ownership of land by the Indians. (c) Squatting was generally discouraged by colonial officials; formal transfer of ownership to settlers was required because the British Crown and their designated officials claimed ownership to the land. (d) There was no general policy toward the practice of "squatting"; it was left to the individual settlers.
Lindsey's auto-insurance company issued her a policy that required the installation of a devise that monitors her driving habits. Lindsey is confused because she had never gotten into an accident before she bought the insurance. The insurance company is protecting itself against
a. Adverse selection b. Moral hazard c. Bad drivers d. None of the above
According to the modern view of the Phillips curve, expansionary macroeconomic policy that leads to inflation will reduce unemployment
a. only if people underestimate the inflationary side effects of the policy. b. only if people overestimate the inflationary side effects of the policy. c. if people accurately anticipate the inflationary side effects of the policy. d. only if monetary policy provides the macroeconomic stimulus.