If a perfectly competitive firm receives a price below its shutdown point, it should stay open
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Which aspect of undeveloped labor markets causes unemployment in undeveloped labor markets to be misunderstood?
a. higher inflation rates b. greater government control c. barter and trade economies d. agricultural economies
The use of money and credit controls to change the macroeconomy is
A. Fiscal policy. B. No longer used in the United States. C. Considered ineffective by most economists. D. Monetary policy.
Starting from long-run equilibrium, an adverse inflation shock results in a short-run equilibrium with ________ inflation and ________ output.
A. lower; lower B. higher; lower C. higher; higher D. higher; potential
Explanations for the high saving rate in China consistent with the life-cycle reason for saving include:
A. few opportunities to borrow funds for education or paying for a house. B. the desire to leave resources to children who provide support and attention to parents in their old age. C. China's limited social safety net provides most people with little protection against health problems and medical costs. D. low unemployment rates in China.