In the short run, which of the following is FALSE about the shutdown point?
A. Product price is equal to the minimum average variable cost.
B. Total revenue is equal to total fixed cost.
C. Total revenue is equal to total variable cost.
D. Price multiplied by quantity must be equal to minimum average variable cost multiplied by quantity.
Answer: B
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Import restrictions due to the imposition of tariffs by the U.S. government
A) will ultimately cause inefficient resource allocation in the United States. B) will lead to lower incomes in the economy of U.S. trade partners. C) will lead to a decline in the quantity of the product consumed in the United States. D) all of the above are likely to occur
Which of the following does not involve exports and imports?
A. Current account. B. Capital account. C. Balance of trade. D. Net exports.
If the price level changes from PL2 to PL1, what happens to the quantity of real GDP demanded?
a. It decreases from RGDP2 to RGDP1.
b. It increases from RGDP1 to RGDP2.
c. It decreases from RGDP1 to RGDP2.
d. It increases from RGDP2 to RGDP1.
If the marginal propensity to consume (MPC) is 0.75, the value of the spending multiplier is:
A. 0. B. 1. C. 4. D. 5.