If individuals start paying off the large amount of credit card debt they now hold,
A) the supply of loanable funds will shift rightward.
B) the supply of loanable funds will shift leftward.
C) the demand for loanable funds will shift rightward.
D) the demand for loanable funds will shift leftward.
E) an excess demand for loanable funds emerges and persists.
D
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Shortages occur at prices which are above the market clearing price
Indicate whether the statement is true or false
The major advantage of the sole proprietorship is its
a. ability to raise funds. b. lack of distinction between business and owner. c. provision of continuity in the business in case of death. d. flexible management.
An addition of a complementary resource would ______ the marginal revenue product of any given resource.
A. raise B. lower C. have no effect upon
Refer to Scenario 9.3 below to answer the question(s) that follow. SCENARIO 9.3: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 per cent on their investment. The restaurant is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $5 on average per meal. Refer to Scenario 9.3. Total revenue per week is
A. $3,000. B. $4,000. C. $4,500. D. $8,100.