If a firm shuts down in the short run
A. it will lose its operating costs.
B. it will incur only its explicit costs.
C. its losses will be equal to zero.
D. it will incur its fixed costs.
Answer: D
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The direct trade of goods and services for other goods and services is called:
A. financial intermediation. B. using a medium of exchange. C. diversification. D. barter.
Which of the following statements about the Sherman Act is CORRECT?
A) The Sherman Act was the second federal antitrust law. B) The Sherman act legalized monopolization if the company behaved "reasonably" once it became a monopoly. C) The Sherman Act outlawed natural monopolies. D) The Sherman Act made restriction of interstate trade illegal.
Assuming a fully loaned-up banking system and a deposit expansion multiplier of 2, a $10 million government expenditure financed by sales of securities to the banking system will cause the money supply to
A) remain unchanged. B) rise by $5 million. C) rise by $10 million. D) rise by $20 million.
The official poverty level is based on pretax income including cash. Which of the following statements is correct regarding this official specification of poverty?
A) This is a good definition of poverty since it is made up of the income from productive resources. B) This is not a good definition of poverty because our tax structure consists of different tax brackets based on income. C) This is not a good definition of poverty because it does not include in-kind subsidies. D) This is a good definition of poverty because it is easy to measure.