Below the short-run shutdown price, the firm
A. is earning negative economic profits.
B. is making a normal rate of return on its capital investment.
C. is earning positive economic profits.
D. may be earning a positive or negative economic profits depending upon costs.
Answer: A
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Refer to Table 20-14. The percentage change in real average earnings from 1965 to 2010 equals
A) 2.0 percent. B) 19.7 percent. C) 24.6 percent. D) 80.3 percent.
The following interactions between binary and continuous variables are possible, with the exception of
A) Yi = ?0 + ?1Xi + ?2Di + ?3(Xi × Di) + ui. B) Yi = ?0 + ?1Xi + ?2(Xi × Di) + ui. C) Yi = (?0 + Di) + ?1Xi + ui. D) Yi = ?0 + ?1Xi + ?2Di + ui.
Developing countries do:
A. compete with one another for foreign investment, and this competition reduces the benefits from foreign investment. B. not compete with one another for foreign investment, because they have sufficient domestic saving to finance their investment needs. C. not compete with one another for foreign investment, because they lack the infrastructure to attract it in the first place. D. compete with one another for foreign investment, but this competition is beneficial to developing countries because it insures a more efficient allocation of resources.
Exhibit 21-5 International currency markets
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Exhibit 21-5 displays the international currency market for yen in terms of dollars and dollars in terms of yen. The supply curve in graph 15-5(A) is determined by:
A. U.S. citizens attempting to purchase Japanese-made goods. B. Japanese attempting to purchase U.S.-made goods. C. U.S. businesses attempting to sell to the Japanese. D. Japanese businesses attempting to sell to the U.S.