Ted's Pancake Kitchen suffers a short-run loss. When should Ted decide to shut down rather than continue to produce?
A) if his Kitchen's revenue is less than its fixed costs
B) if his Kitchen's revenue is less than its total costs
C) if his Kitchen's revenue is less than its variable costs
D) if his Kitchen's revenue is less than its explicit costs
C
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An example of the command-and-control approach to environmental policy is:
a. allowing individuals to sue freon producers if CFC emissions exceed a government-set standard. b. allowing coal producers to buy and sell permits to allow CFC emissions. c. placing a tax on freon to reduce its use and the corresponding CFC emissions (which contribute to the ozone hole). d. none of these.
Which of the following correctly describes the spending multiplier?
a. The initial change in consumption, investment, government spending, or net exports divided by the change in equilibrium GDP. b. An initial increase in aggregate expenditures divided by the equilibrium GDP. c. An initial increase in aggregate expenditures divided by the change in equilibrium GDP. d. The ratio of the change in real GDP to an initial change in any component of aggregate expenditures.
John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the accompanying table. Time cleaning windows (hours/day)Total number of windows cleaned0017211314416517 A second hour cleaning windows will yield additional earnings of ________.
A. $2 B. $8 C. $7 D. $14
The major economic cost of growth is:
A. consumption sacrificed for capital formation. B. higher interest rates. C. higher inflation rates. D. investment in stocks and bonds.