An individual firm is insolvent when ________
A) its assets exceed the value of its liabilities
B) its average costs per unit are greater than its marginal cost
C) its average costs per unit are less than its marginal cost
D) its liabilities exceed the value of its assets
D
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Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Quick Buck cheats by reducing its price to $1 while Pushy Sales continues to comply with the collusive agreement, then Quick Buck's economic profit will be ________.
A. $3,000 B. $6,000 C. $4,000 D. $2,000
If there are human capital externalities, then
A) human capital should be taxed. B) convergence in per capita incomes occurs. C) differences in human capital across countries can persist. D) pollution is a problem.
Both President Bush and President Obama wanted tax cuts to stimulate consumer spending during the 2007-2009 recession
a. True b. False Indicate whether the statement is true or false
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and monetary base in the context of the Three-Sector-Model? a. The GDP Price Index rises and monetary base rises
b. The GDP Price Index rises and monetary base falls. c. The GDP Price Index and monetary base fall. d. The GDP Price Index and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.