Evaluate the following statement. If a firm is suffering economic losses then the sensible thing to do is to shut down temporarily
What will be an ideal response?
Not necessarily. A firm should only shut down if it is not earning an operating profit. If a firm is receiving less total revenue than its total variable cost then this advice would make sense.
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Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If K and N each increase by 5 percent, and A is unchanged, by how much does Y increase?
A) 5% B) 10% C) 15% D) 20%
The Toxics Release Inventory (TRI)
a. is a national database providing information about hazardous releases b. provides information on hazardous substances solely to government officials c. is no longer maintained and reported to the public d. provides an annual list of the parties responsible for hazardous releases
A product's ________ describes the amount of the product that is demanded for each possible combination of its price and other factors.
A. demand curve B. price-consumption curve C. utility function D. demand function
What concept does the following formula express?
a. autonomous change in consumption spending
b. marginal propensity to consume
c. marginal propensity to save
d. equilibrium in the aggregate expenditure model