A firm suffering economic losses decides whether or not to produce in the short run on the basis of whether
A. revenues from operating are sufficient to cover fixed plus variable costs.
B. revenues cover variable costs.
C. revenues from operating are sufficient to cover fixed costs.
D. Firms suffering economic losses will always shut down.
Answer: B
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16) In the figure above, Point A is undesirable because A) there is an inefficient use of resources. B) too much healthcare is being produced. C) the opportunity costs of health care are too high. D) point E is a more realistic option in this economy.
The regulatory agency most concerned with false advertising is the
A. Federal Trade Commission. B. Federal Deposit Insurance Corp. C. Antitrust Division of the Justice Department. D. National Labor Relations Board.
If the world price for good A is above the domestic price for good A without trade, then producer surplus will ________ and total economic surplus will ________ with trade.
A. increase; decrease B. decrease; increase C. increase; increase D. decrease; decrease
Employer provided health care limits the moral hazard problem to a large degree
a. True b. False