In the long run if the price is below average total cost, the firm will
A. go out of business.
B. stay in business.
C. temporarily shut down.
D. None of the choices are correct.
A. go out of business.
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Economic experience since 1973 indicate that, under floating exchange rates
A) large and persistent departures from external balance were not prevented. B) large and persistent departures from external balance were prevented. C) changes in exchange rates failed to act as automatic stabilizers. D) reduced monetary policy autonomy. E) monetary policy autonomy was protected.
In the classical model, taxes and spending are treated as two separate variables
a. True b. False
Economists have found evidence that differences in wages can be explained by
a. experience b. job characteristics c. physical attractiveness d. All of the above are correct.
Why is the unemployment rate among teenage workers so much higher than other workers?
a. They have little education. b. They take unskilled jobs. c. They are the first laid off when the economy slows down. d. All of the above are reasons why the unemployment rate is so much higher among teenagers.