If a firm shuts down in the short run, it will:
A. incur losses equal to its fixed costs.
B. have total revenue greater than total fixed costs.
C. reduce its losses to zero.
D. do this because P > AVC.
Answer: A
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The root cause of the hyperinflation that plagued Zimbabwe in the 2000s is ________
A) printing of too much money by the central bank B) government expenditures greatly above revenues C) outlawing of price increases on many commodities D) allowing the use of foreign currencies E) the issuance of a $100 billion bank note
According to the principal of comparative advantage a country
A) that produces goods at the lowest absolute cost will export those goods. B) will import goods it can produce at the lowest relative cost. C) will export goods it can produce at the lowest relative cost. D) will only import those goods that it cannot produce for itself.