The net export component of aggregate demand is defined as U.S.
A. imports minus U.S. exports.
B. imports plus U.S. exports.
C. exports minus U.S. imports.
D. exports minus taxes and customs duties.
Answer: C
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The tragedy of the commons was avoided in the Middle Ages in much the same way economist Elinor Ostrom's research suggested. Which of the following ways reflects Ostrom's findings, and was actually conducted in the middle ages?
A) Common grounds were sold to individuals. B) Local law enforcement monitored entry into the commons. C) There was social pressure to uphold traditionally accepted limits on family. D) The government imposed a tax for the use of the commons.
To evaluate the size of the federal budget deficit or surplus over time, it would be best to look at the
A) budget deficit or surplus as a percentage of tax revenues. B) budget deficit or surplus as a percentage of government spending. C) absolute size of the budget deficit or surplus. D) budget deficit or surplus as a percentage of GDP.
Assume a firm is facing the following situation: At Q = 1,000, P = $10, MC = $10, ATC = $18, and AVC = $16. This firm should shut down and, in so doing, limit its losses to $2,000
Indicate whether the statement is true or false
If a firm shuts down in the short run, it will:
a. incur losses equal to its fixed costs. b. produce at the output level where MC = MR. c. reduce its losses to zero. d. do this because P > AVC. e. have total revenue greater than total fixed costs.