A firm will shut down in the short run if
a. P < AVC.
b. P > AVC.
c. AVC > AFC.
d. TR > TC.
a
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In Figure 5-1 above, if the budget line is BB0 and the natural real GDP is $5300, the structural surplus or deficit is
A) FC. B) AD. C) FA. D) none of the above.
If multiplier effects are ____ than policy makers expect or the natural rate of real output is _____ than expected, monetary policy will tend to undershoot its intended effects
a. Greater; greater. b. Greater; less c. Less; greater d. Less; less
Taxes on polluting firms have
A. can easily be avoided and are therefore, unsuccessful. B. been successful in reducing water pollution in the Ruhr River basin in Germany. C. more advantageous over voluntarism and direct controls. D. not been used in the United States.
To maximize progress toward a political goal, the "rational terrorist" will always choose those actions for which the
A. most money is lost. B. most people die. C. fewest innocent people die. D. marginal benefit equals or exceeds the marginal cost.