Last year in the country of Nerf imports equaled exports. Nerf's GDP was $500 million, its consumer expenditure was $380 million, and its investment was $20 million. Nerf's government expenditure on goods and services were ________

Externalities are failures of

A. the market to correctly price resources. B. firms and consumers to make rational tradeoffs. C. firms to make rational tradeoffs. D. consumers to make rational tradeoffs.

At a firm’s profit-maximizing level of output, its price is $200 and its short-run average total cost is $225. The firm

A. has a profit of $25 per unit of output. B. should shut down if its short-run average fixed cost is less than $25. C. has a loss of $100 per unit of output. D. should shut down if its short-run average variable cost exceeds $25.