If a firm doesn't make an economic profit, it will shut down
Indicate whether the statement is true or false
False. The firm compares its losses from operating with its losses when shutting down and will shut down if the latter loss is less.
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Describe the changes in the variables that will cause the demand for a product to decrease, shifting the demand curve to the left
What will be an ideal response?
It may be misleading to call water a necessity because
A) the amount of water a community consumes does not vary with the price people must pay for water. B) the demand for water does not obey the law of demand. C) the demand for water is highly elastic. D) the demand for water is highly inelastic. E) there are many uses of water for which good substitutes exist.
The economy tends to be less stable with a __________ LM curve causing interest rates to be rather __________ to shifts in the IS curve
A) steeper; sensitive B) steeper; insensitive C) flatter; sensitive D) flatter; insensitive
Although most slaves came to the colonies before 1776, the majority of other types of labor came to North America voluntarily
Indicate whether the statement is true or false