How does a firm that is losing money in the short run decide whether to shut down or continue to produce to minimize its losses?
The firm should continue to produce in the short run if TR exceeds TVC; if TR falls below TVC, the firm should shut down.
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Compared with the 19th century, during the colonial period technological changes that raised output relative to inputs:
a. were slow and steady. b. increased in the early part of the period, but fell off dramatically after 1643. c. remained minor and sporadic. d. increased dramatically after 1643.
Compared to perfect competition, the consumer surplus in a monopoly
A) is unchanged because price and output are the same. B) is lower because price is higher and output is lower. C) is higher because price is higher and output is the same. D) is eliminated.
Social security taxes in the U.S. tend to be ________
A) proportional B) progressive C) regressive D) negative
Calculating Gross Domestic Product (GDP) by the income approach would require including
A. all wages paid. B. the market value of all final goods and any profits. C. all restaurant sales. D. all transfer payments by the government.