Suppose the price of a product is less than its average variable cost. When the firm's fixed obligations are completely ended, it will now most likely
a. make an economic profit
b. go out of business
c. expand to a bigger operation
d. continue to be shut down
e. break even
B
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In the second quarter of 1995, the following values were observed: real GDP = 4,359.3 billion; GDP deflator = 325.1; and M1 = 989.5. What is the value of velocity?
A. 32.51 B. 24.31 C. 14.32 D. 2.31
In the Free Banking Era (the period of no central bank),
(a) anyone could form a bank if they met the requirements. (b) banks were required to offer free financial services. (c) the federal government rescinded its tax on bank notes. (d) states rescinded their taxes on bank notes.
The manager of Happy Chickens, an organic egg producer, should avoid all of the following topics except which one when speaking to managers of Best Eggs, a competitor firm?
A) Happy Chickens' intent to bid on a large government contract to supply eggs to public schools B) forthcoming changes in Happy Chickens' pricing policies C) Happy Chickens' planned production amounts D) a recent medical report documenting the health benefits from eggs
An inflationary gap is the amount by which
A. the short-run equilibrium level of nominal GDP is above the short-run level of real GDP. B. total planned production exceeds total planned real expenditures in the long run. C. the short-run equilibrium level of nominal GDP is below the short-run level of real GDP. D. the short-run equilibrium level of real GDP is above the full-employment level of real GDP.