With the economy booming, the government starts to worry about the increasing rate of inflation, and decides to cut its spending on highway maintenance and defer it to sometime in the future. This is an example of:

If a firm shuts down in the short run,

a. it exits the industry b. losses would equal its variable costs c. losses would equal its fixed costs d. profits would be zero e. losses would equal to zero

What happens in the primary market?

A) primary inputs like electricity are sold B) a corporate financial manager will resell previously issued shares of stock C) newly issued claims are sold by the borrowing firm to the initial buyer D) already issued claims are sold from one investor to another