A firm will not shut down in the short run as long as price exceeds:
A. average fixed cost at the level of output where marginal revenue equals marginal cost.
B. average variable cost at the level of output where marginal revenue equals marginal cost.
C. marginal cost at the level of output where marginal revenue equals marginal cost.
D. total revenue at the level of output where marginal revenue equals marginal cost.
Answer: B
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In the above table, the number of marginally attached workers is
A) 40 million. B) 55 million. C) 15 million. D) 100 million.
To obtain the gains available from comparative advantage, individuals or countries must do more than specialize; they must also
A) save. B) invest. C) engage in research and development. D) trade.
The ratio of the burden of the tax borne by demanders to the burden born by suppliers will be equal to the sum of the absolute values of the slopes of the demand curve and the supply curve
a. True b. False
When the Fed wishes to reduce the economy's money supply, it:
a. lowers the discount rate. b. lowers the required reserve ratio. c. reduces the margin requirement. d. sells some of its government securities. e. prints more money.