If a profit-maximizing firm shuts down in the short run, it must be true that before the shutdown, at all positive output levels,
a. average total cost was less than average variable cost
b. fixed cost was greater than total revenue
c. variable cost was greater than total revenue
d. profit was zero
e. total cost plus total revenue was less than profit
C
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Imposing a tariff on a good leads to a ________ in the price of the product and ________ in imports
A) rise; no change B) fall; a decrease C) rise; an increase D) fall; an increase E) rise; a decrease
Summarize the type of agreement that NAFTA is, its history, the process by which it has been implemented in the last 15 years
What will be an ideal response?
It may be argued that Japan's explicit promotion of its microchip industry was an excellent example of successful industrial policy
What criteria would you apply to determine whether such a policy is or is not successful? Judging from your own stated criteria, was Japan's exercise successful? Why or why not? What information would a government require in order to increase the probability that its industrial policy would promote long term self-generated economic growth?
Cost-push inflation: a. occurs when the aggregate demand curve shifts rightward
b. occurs when the aggregate supply curve shifts rightward. c. results in a decrease in the unemployment rate. d. results in a movement along the aggregate demand curve. e. is caused by the same factors that lead to demand-pull inflation.