A perfectly competitive firm will produce at an economic loss (negative profit) in the short run rather than discontinue production if there is a rate of output at which price
a. exceeds average variable cost
b. exceeds average fixed cost
c. exceeds average total cost
d. exceeds marginal revenue
e. equals marginal cost
A
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Almost half of all spells of unemployment end when the unemployed person leaves the labor force
a. True b. False Indicate whether the statement is true or false
Instruments so widely accepted and purchased by others that they are very similar to cash are known as
a. liquid assets b. hard assets c. corporate assets d. marketable securities e. none of the above
After a particular loan has been paid off, neither the borrower nor the lender has lost purchasing power. Therefore, it must be true that actual inflation was
A. greater than expected inflation. B. equal to expected inflation. C. less than expected inflation. D. greater than the nominal rate of interest.
When disposable income is 2000, how much is consumption?
