If a firm shuts down in the short run, it will:
A. incur losses equal to its fixed costs.
B. have total revenue greater than total fixed costs.
C. reduce its losses to zero.
D. do this because P > AVC.
Answer: A
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When the First Bank of Townsville makes a loan, it
A) prints money. B) borrows the money from the Fed. C) creates a checkable deposit. D) decreases the quantity of money. E) increases its reserves.
The New Keynesian model, is Keynesian in that ________
A) it assumes wages and prices are sticky B) changes in the money supply are taken to be the single most important influence on business movements C) the velocity of money is a constant D) expectations are assumed to be rational
According to public choice theory, tariffs, quotas, and other trade restrictions are primarily the result of the
a. political clout of foreigners. b. political clout of domestic consumers. c. political power of special interest groups. d. political desire for economic efficiency.
The difference between what you pay for some good or service and what you would have been willing to pay is called ________________________.
Fill in the blank(s) with the appropriate word(s).