When faced with an economic loss, a competitive firm will shut down its operations in the short run
a. True
b. False
Indicate whether the statement is true or false
False
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Maximum employment and moderate long-term interest rates are best achieved with
A) price stability. B) high and variable inflation rates. C) high real interest rates. D) high and stable inflation rates. E) high short-term interest rates.
The above figure shows the U.S. market for 1 carat diamonds. The free trade, the price in the United States for diamonds is equal to ________ and with the quota illustrated in the figure, the price in the United States is equal to ________
A) $2,000; $4,000 B) $2,000; $3,000 C) $4,000; $3,000 D) $4,000; $2,000 E) $2,000; $2,000
When Norway unilaterally fixes its exchange rate against the euro and leaves the krone
A) free to float against the non-euro currencies, it is able to keep at least some monetary independence. B) free to float against the non-euro currencies, it is unable to keep at least some monetary independence. C) free to float against the non-euro currencies, it is able to keep its monetary independence. D) run by crawling peg against the non-euro currencies, it is able to keep at least some monetary independence. E) fixed against the non-euro currencies, it is unable to keep its monetary independence.
In the fall of 2012, more than three years after the end of the recession, the unemployment rate remained just below 8% and nearly half of the unemployed had been out of work for at least six months
Unemployment had been so high for so long, that many economists had begun speaking of the "new normal", in which unemployment rates might be stuck at higher levels for many years. If this "new normal" does materialize, these higher unemployment rates would most likely be the result of ________ unemployment. A) frictional B) cyclical C) structural D) seasonal