If your firm is producing a good at a level where marginal revenue equals marginal cost, and price is greater than average total cost, your firm:
A. should shut down and suffer a loss equal to your fixed costs.
B. is earning an economic profit greater than zero.
C. should decrease output.
D. should increase output.
Answer: B
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A minimum wage set above the equilibrium wage rate for low-skilled workers ________
A) creates more employment opportunities for low-skilled workers B) creates more prosperity among younger people C) creates unemployment among low-skilled workers D) increases the number of good paying jobs available to young people
A system where goods and services are exchanged directly without a common unit of account is called the:
A) commodity system. B) fiat system. C) barter system. D) none of the above.
Today, about one out of four legal immigrants arrives in the U.S with experience in a professional occupation
Indicate whether the statement is true or false
If the economy is in a recession, in an effort to move the economy to the long-run equilibrium, the government could:
A. increase spending to increase aggregate demand. B. decrease spending to decrease aggregate demand. C. increase spending to decrease aggregate demand. D. decrease spending to increase aggregate demand.