A firm should shut down in the short run if it s AVC is less than the price it receives per unit of the good.
Answer the following statement true (T) or false (F)
False
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If macaroni and cheese is an inferior good, then a decrease in income will result in
A) an increase in the demand for macaroni and cheese. B) a decrease in the demand for macaroni and cheese. C) an increase in the supply of macaroni and cheese. D) a decrease in the supply of macaroni and cheese.
What is the usual shape of the production possibilities curve?
a. upward-sloping b. bowed-out from the origin c. bowed-in from the origin d. a straight-line, downward-sloping curve e. U-shaped
Smith's income was $50,000 in year 1 and $55,600 in year 2. The CPI was 114 in year 1 and 124 in year 2. What was the approximate percentage change in Smith's real income between the two years?
A) -2.2 percent B) +3.4 percent C) -1.7 percent D) +5.6 percent E) +2.2 percent
When forecasting exchange rates, forecasters must predict the magnitude, timing, and direction of change in exchange rates.
a. true b. false