If a perfectly competitive firm's price is above its average total cost, the firm
A) is incurring a loss. B) should shut down. C) is earning a profit. D) is breaking even.
C
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Appendix: When two or more "independent" variables are highly correlated, then we have:
a. the identification problem b. multicollinearity c. autocorrelation d. heteroscedasticity e. complementary products
A family on a trip budgets $800 for meals and hotel accommodations. Suppose the price of a meal is $40 . In addition, suppose the family could afford a total of 8 nights in a hotel if they don't buy any meals. How many meals could the family afford if they gave up two nights in the hotel?
a. 1 b. 2 c. 5 d. 8
How well did the Federal Reserve Banks perform during the Great Depression?
(A) The Chair of the Board of Governors made bad decisions and directed the Federal Reserve Banks to act in harmful ways. (B) The Federal Reserve System skillfully guided the United States economy out of the Great Depression. (C) Individual governors of the Federal Reserve Banks disagreed over policy and were unable to stop the depression. (D) The Great Depression took place before the Federal Reserve System was established.
In the long run, a change in the money supply does not affect the natural rate of unemployment because _____
Fill in the blank(s) with the appropriate word(s).