A Firm Should Not Necessarily Shut Down If

question 127

Multiple Choice

A firm should not necessarily shut down if:

• A)total revenue is less than total variable cost.
• B)losses are greater than fixed costs.
• C)the demand curve facing the firm lies below its average variable cost curve.
• D)price is less than average variable cost.
• E)losses exceed variable costs.

Understand the origin and role of international monetary organizations from the Bretton Woods agreement.

Define the characteristics of different economic systems and their impact on societal welfare.

Differentiate between behavioral economics and traditional economic models.

Explain the roles and importance of the IMF and WTO in international trade and economics.

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Definitions:

Labor Force

The total number of people available to work, including both the employed and the unemployed who are seeking employment.

General Price Level

An overall measure of the cost of goods and services in an economy at a specific time.

Macroeconomics

The branch of economics that studies the behavior and performance of an economy as a whole, focusing on aggregate changes.

Individual Units

Individual units refer to the single, distinct items or entities that can be counted or measured, often used in reference to products or components in economics and various sciences.