If the firm is incurring losses in the short run, then which of the following is true?
A. P < ATC
B. P > ATC
C. P > MC
D. MC > ATC
Answer: A
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The goal of a gold standard is to
A) return money back to its natural state. B) shift wealth from the middle class to the rich. C) reduce uncertainty by limiting the power of the Federal Reserve to increase the amount of money in circulation. D) conserve on natural resources, such as pulpwood, used to make paper money.
In response to a positive technology shock, which prediction of the sticky price model is difficult to reconcile with the data?
A) Output increases. B) Employment decreases. C) The price level decreases. D) Money is procyclical.
Which of the following is true of monopoly but not true of perfect competition?
a. Firms can potentially earn economic profits in the short run b. Total revenue is the product of price times the quantity sold. c. Firms can potentially earn economic profits in the long run. d. A profit-maximizing firm will shut down if price falls below the average variable cost.
Assets minus liabilities equals
A. net worth. B. wealth. C. depreciation. D. Both A and B are correct.