Refer to Scenario 9.5 below to answer the question(s) that follow. SCENARIO 9.5: 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 percent 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 $3 on average per meal. Refer to Scenario 9.5. Weekly total revenue is
A. $1,600.
B. $2,000.
C. $2,700.
D. $3,600.
Answer: C
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What all "New Classical" models have in common is the assumption of
A) imperfect information. B) continuous clearing of product and labor markets. C) the primary importance of technological and supply shocks in causing business cycles. D) downward nominal wage rigidity. E) countercyclical real wages.
Long-run equilibrium for a monopolistic competitor is characterized by
A) a price exceeding marginal cost. B) marginal cost pricing. C) economic profits. D) too few firms in the industry.
In the 20th century, our federal budget deficits were, on average, largest in the
A. 1960s. B. 1970s. C. 1980s. D. 1990s.
Which component(s) of U.S. real GDP decreased in size relative to total U.S. real GDP from 1950 to 2000?
A. Only services. B. Only manufacturing. C. Agriculture and manufacturing. D. Only agriculture.