Firms that do not reach their minimum long run average cost must, to avoid continued losses, either adjust their scale or leave the industry
Indicate whether the statement is true or false
true
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The imposition of price ceilings on a market often results in
A. an increase in investment in the industry. B. a persistent surplus in the market. C. the diversion of income toward black-market suppliers. D. lower prices being offered on the black market.
Compensation of employees:
a. excludes the monetary value of fringe benefits. b. excludes paid vacations. c. is the largest component of GDP. d. excludes employer's taxes paid for employees' Social Security. e. includes rental income.
Which of the following statements is true about causes of business cycle fluctuations?
A. Economists all agree that monetary changes are primarily responsible for business cycle fluctuations. B. Economists all agree that supply shocks are the cause of most business cycle fluctuations. C. There are a wide range of theories as to the underlying causes of business cycle movements. D. Economists all agree that productivity shocks are the cause of most business cycle changes.
Which is true about M1?
a. it is the sum of US coins and currency b. it is the sum of US coins and currency, and checking accounts c. it is the sum of US coins and currency, checking and savings accounts d. it is the sum of US coins and currency, checking accounts, savings accounts, and large CDs