A firm should always shut down if its revenue is
A) declining.
B) less than its average fixed costs.
C) less than its total costs.
D) less than its avoidable costs.
D
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If technological change occurs in the economy
A) we will move up along the long-run aggregate supply curve. B) we will move down along the long-run aggregate supply curve. C) the long-run aggregate supply curve will shift to the right. D) the long-run aggregate supply curve will shift to the left.
Rent controls are
A) when rents are set above the market clearing level to aid landlords. B) used to provide incentives to contractors to build new apartments. C) used to generate revenue for the local government. D) when rents are set below the market clearing level.
The rate of change in GDP over time is called the:
A. price accelerator. B. output generator. C. Gini coefficient. D. economic growth rate.
Suppose that the market price of good X equals the firm's cost of producing that good, but it does not reflect any costs imposed on society. Which of the following is FALSE?
A. The good is priced too low. B. An external benefit is associated with good X. C. Too much of good X is being produced. D. Resources are over-allocated in the production of good X.