Many gift shops along the ocean shut down during the winter because
a. revenues cannot cover fixed costs
b. marginal revenue does not equal marginal cost
c. costs are minimized by shutting down
d. revenues are maximized by shutting down
e. revenues cannot cover variable costs
E
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Economics examines the options open to households and business firms, but ignores the options of governments and entire societies.
Answer the following statement true (T) or false (F)
When you buy a corporate bond, you are
A. borrowing funds from the corporation. B. lending funds to the corporation. C. selling an ownership right in the corporation. D. acquiring an ownership right in the corporation. E. b and d
If Claire's reservation price on a sweater is $37, which of the following prices would she have to observe in the market in order to buy a sweater?
A. $37.01 B. $38.00 C. $37.00 D. Claire would not buy a sweater at any of these prices.
An increase in the expected future price level: a. Shifts both SRAS and LRAS to the left
b. Shifts both SRAS and LRAS to the right. c. Shifts SRAS left but leaves LRAS unchanged. d. Shifts SRAS right but leaves LRAS unchanged.