If the price of a product falls below average total cost in the short run, the firm:
a. has an economic profit.
b. cannot cover total fixed costs.
c. experiences a loss.
d. must always shut down.
e. should expand output until MC = MR.
c
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As compared to the estimates of the natural rate of unemployment for the United States, those for Europe are
A) higher. B) the same. C) lower. D) higher and more variable.
Refer to Figure 2-2. If Vidalia chooses to produce 60 dozen orchids, how many roses can it produce to maximize production?
A) 30 dozen roses B) 50 dozen roses C) 100 dozen roses D) 150 dozen roses
To keep from running out of international reserves under the Bretton Woods system, a country had to implement ________ monetary policy to ________ its currency
A) expansionary; strengthen B) expansionary; weaken C) contractionary; strengthen D) contractionary; weaken
Dummy variables are used in time-series forecasting models
A. to change the intercept of a regression in selected periods. B. to account for random variation in the data. C. to account for seasonal variation in the data. D. both a and b E. both a and c