A firm will choose to shut down rather than operate as long as
A. price is greater than or equal to AFC.
B. MC is greater than AVC.
C. price is less than AVC.
D. AVC is greater than AFC.
Answer: C
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From 2008 to 2014, the Fed engage in ________ rounds of quantitative easing
A) 1. B) 2. C) 3. D) 4.
One reason the government enacts fiscal policy instead of waiting for the economy to correct itself is the automatic adjustment:
A. can take a very long time. B. means a lower level of potential GDP. C. will cause permanent inflation. D. is generally not supported by government officials.
A 401(k) account means that the maximum amount of savings that can be deposited is $401,000.
A. True B. False C. Uncertain
The difference between current market price and full costs of production for the firm is known as
A. producer surplus. B. nonprice surplus. C. consumer surplus. D. market surplus.