In the short run, a perfectly competitive ball bearing manufacturer will continue to produce at a loss if
a. it is covering all of its fixed cost
b. it is covering all of its variable cost plus part of its fixed cost
c. variable cost is less than fixed cost
d. fixed cost is zero
e. fixed cost is minimized
B
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Refer to Table 14-1. Is there a dominant strategy for Godrickporter and if so, what is it?
A) Yes, Godrickporter should increase its advertising budget. B) Yes, Godrickporter should not change its advertising budget. C) Yes, Godrickporter's dominant strategy is to collude with Star Connections. D) No, its outcome depends on what Star Connections does.
If a country tries to stimulate the economy with fiscal policy, the effects will be exchange rate
A. depreciation, lower interest rates, and a small increase in aggregate demand. B. depreciation, higher interest rates, and a small decrease in aggregate demand. C. appreciation, lower interest rates, and a small increase in aggregate demand. D. appreciation, higher interest rates, and a small increase in aggregate demand.
The bursting of the housing bubble in 2006 caused ________ to cut back on their spending, thereby shifting the PAE line ________.
A. government and businesses; upward B. government and businesses; downward C. businesses and households; downward D. businesses and households; upward
Assume that you are currently making $15,000 a year as a sales clerk in a department store
At the end of your senior year in college in May you get a job offer from a large accounting firm that won't start until late August of that same year but which pays $45,000 per year. What would you expect might happen to your demand for an automobile and new clothes immediately and why?