The above figure shows a perfectly competitive firm. If the market price is $5, the firm
A) is making an economic profit.
B) is making zero economic profit.
C) will immediately shut down.
D) will not shut down.
E) might shut down but more information is needed about the AVC.
E
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A union worker with a COLA in his contract does not have to worry about the value of his check eroding due to inflation. Why?
a. the amount is indexed to inflation b. savers are helped by inflation c. when inflation is greater than the fund's investment earnings, there will be positive gains d. the rule of 72 says that as more people pay into the system, the interest earnings will be large enough to award bonuses to all those who draw SS
The seven members of the Board of Governors of the Federal Reserve System are:
A. appointed by the president with the confirmation of the Senate. B. elected by Congress from a slate of nominees provided by the president. C. appointed by the Senate Finance Committee. D. appointed by the presidents of the 12 Federal Reserve Banks.