If a perfectly competitive firm is incurring a short-run loss, it
a. then will incur a long-run loss
b. will shut down
c. will continue to operate in the short run if its fixed cost is covered
d. will continue to operate in the short run if its variable cost is covered
e. will raise its price in the short run
D
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If consumption expenditures are $500 million, net investment is $100 million, depreciation equals $5 million, imports are $50 million, exports are $55 million, government expenditure on goods and services is $220 million, and government transfer
payments are $20 million, then GDP is A) $790 million. B) $800 million. C) $830 million. D) $850 million.
If it is difficult for a firm to attribute the output it produces to a particular worker then
A) a piece-rate system of compensation will be preferable to a salary system. B) a salary compensation system will be preferable to a commission system. C) its employees are likely to form a union. D) a commission system of compensation will be preferable to a salary system.
If the U.S. dollar becomes weaker in international markets, the net effects will include
A) a decrease in short-run aggregate supply (SRAS) and an increase in aggregate demand. B) an increase in short-run aggregate supply (SRAS) and a decrease in aggregate demand. C) a decrease in both short run aggregate supply (SRAS) and aggregate demand. D) an increase in both short run aggregate supply (SRAS) and aggregate demand.
Diminishing marginal product first sets in at the minimum point of the
a. ATC curve. b. AVC curve. c. AFC curve. d. MC curve.