A perfectly competitive firm is more likely to shut down during a recession, when the demand for its product declines, than during an economic expansion, because during the recession it might be unable to cover its
A) fixed costs.
B) variable costs.
C) external costs.
D) depreciation due to machinery becoming obsolete.
B
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Social Security was intended to
A. cover all of the income necessary for retirement. B. provide a safety net of retirement income to which recipients would add their savings and pensions. C. provide retirement income for only those without private pensions. D. provide retirement income for only those who did not save for themselves.
Opportunity cost usually
a. cannot be measured b. applies to labor but not to capital c. is involved in calculating economic profit d. is greater than the cash payment made to a resource e. is less than the cash payment made to a resource
The labels for the axes of an aggregate supply curve should be:
A. aggregate demand for the vertical axis and real national output for the horizontal axis. B. real domestic output for the vertical axis and price level for the horizontal axis. C. real domestic output for the horizontal axis and price level for the vertical axis. D. real employment for the vertical axis and price level for the horizontal axis.
The equation TR/Q is used to compute
A) total cost. B) average revenue. C) demand. D) marginal revenue.