A firm that shuts down in the short run experiences losses equal to its
A. total variable costs.
B. total variable costs minus its total fixed costs.
C. average variable costs.
D. total fixed costs.
Answer: D
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If this is a closed economy how many cars will be exchanged? 
A. 80,000 B. 20,000 C. 60,000 D. 40,000
Income inequality in the United States has increased in part due to globalization. How does globalization contribute to income inequality?
A) It reduces the cost of producing goods and therefore lowers the value of labor services. B) It allows domestic firms to hire low-skilled workers anywhere in the world, putting U.S. workers in competition with foreign workers. This has caused the wages of low-skilled workers to fall relative to the wages of other workers. C) It increases the demand for a wide variety of products which in turn increases prices beyond the reach of average-income households. D) It allows producers to exploit workers and reduce the wages they are willing to pay those workers.
The above figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The maximum economic profit this firm can make equal equals
A) $0. B) $80. C) $120. D) $160.
Keynes's liquidity preference theory of the interest rate suggests that the interest rate is determined by
A. the supply and demand for labor. B. aggregate supply and aggregate demand. C. the supply and demand for loanable funds. D. the supply and demand for money.