This firm would ______ in the short run and __________ in the long run.
A. shut down; stay in business
B. shut down; go out of business
C. operate; stay in business
D. operate; go out of business
D. operate; go out of business
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Based on the data in the table above, the efficient level of output equals
A) 550 units. B) 600 units. C) 650 units. D) 700 units.
According to Keynes, the least variable component of aggregate expenditures is
a. consumption. b. inventories. c. total investment. d. imports
Refer to Scenario 14.4. Suppose that the price of the product rises to $5, the number of workers hired
A) will decrease. B) will increase. C) will not change. D) cannot be determined without knowing the wage rate.
A government wishing to maximize its tax revenues should
A. always assess the lowest possible tax rate. B. always assess the highest possible tax rate. C. determine the highest possible tax rate and then back it down by exactly 4 percentage points. D. push tax rates up to the point where revenues peak, but raise the tax rate no farther.