Refer to Scenario 9.4 below to answer the question(s) that follow. SCENARIO 9.4: Sponsors invest $100,000 in a new deli on the promise that they will earn a return of 10% per year on their investment. The deli sells 52,000 sandwiches per year. The deli's fixed costs include the return to investors and $42,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($2,000 per week). The deli is open 52 weeks per year.Refer to Scenario 9.4. Suppose the average price per sandwich is $5.50. What is the annual profit of the deli?
A. -$22,000
B. $78,000
C. $130,000
D. $244,000
Answer: B
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An import quota on sugar
A) increases the imports of sugar and lowers its price. B) increases the imports of sugar and raises its price. C) increases the demand for sugar and raises its price. D) decreases the imports of sugar and raises its price.
Refer to Exhibit 2-8. For Maria, the opportunity cost of producing one unit of good X is ___________ unit(s) of good Y.
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During a recession
A. incomes fall and unemployment increases. B. incomes fall and unemployment falls. C. incomes rise and employment decreases. D. incomes rise and unemployment increases.
A central bank can help stop a bank panic by
A) raising the required reserve ratio. B) calling in consumer loans. C) acting as a lender of last resort. D) decreasing income taxes.