A price taker is a firm that
A) seeks to maximize revenue rather than profit.
B) cannot influence the market price.
C) searches for the best price and then takes the highest profits possible.
D) buys inputs for firms.
Answer: B) cannot influence the market price.
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
An example of a variable factor of production in the short run is
A) a building. B) capital equipment. C) an employee. D) land.
The World Bank was created as a result of the Bretton Woods conference and was originally focused on the reconstruction of Europe after World War II
Indicate whether the statement is true or false
A firm is currently producing an output at which price equals the minimum point on the average variable cost curve. If wage rates increase, the firm will
A) increase its rate of output to make up for the higher variable costs. B) shut down since it would no longer be covering its variable costs. C) decrease its rate of output to offset the higher variable costs. D) not make any changes since its current rate of output is still minimizing its losses.