Assume that a firm's total revenue is less than its total cost for the level of output it is producing. In the short run, this firm should:
a. expand output
b. contract output.
c. shut down.
d. There is not enough information to answer the question.
d
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According to the classical economists,
A. the interest rate will ensure that the amount households plan to save will equal the amount businesses desire to invest. B. the amount households plan to save is determined primarily by their wage. C. increasing government spending is the most reliable method of restoring full employment. D. unemployment is caused by too little spending.
Suppose group price discrimination is possible but a firm chooses not to and sets the same price in each market. As a result
A) price elasticity of demand is the same in each market. B) the price-inelastic market will buy zero units. C) marginal revenue in the more price-elastic market exceeds marginal revenue in the less price-elastic market. D) the deadweight loss is less than if the firm price discriminated.
Refer to the figure above. The economy is at equilibrium at point B. What would expansionary fiscal policy do?
a. Move the economy from point B upward along AD2 b. Move the economy from point B towards point C c. Move the economy from point B downward along AD2 d. Move the economy from point B towards point A
The entrance of large numbers of "baby boomers" into the labor force in the 1970s and 1980s:
A. caused substantial reductions in permanent unemployment. B. lessened income inequality. C. increased income inequality. D. had no impact on income inequality.