Which of the following decisions best reflects marginal thinking?
a. deciding to get married
b. starting a new business
c. attending graduate school
d. switching phone carriers
d. switching phone carriers
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An economic hypothesis: a. can be tested using empirical analysis
b. can be tested using normative analysis. c. cannot be tested since it is normative in nature. d. cannot be tested since it is a positive economic statement.
In the production possibilities framework, economic growth is depicted by the PPF
A) shifting leftward (toward the origin). B) shifting rightward (away from the origin). C) becoming a straight line rather than a bowed outward curve. D) becoming bowed outward rather than a straight line.
If the equilibrium price of a good decreases and the equilibrium quantity of the good decreases, we can conclude that:
A. demand increased. B. demand decreased. C. supply increased. D. supply decreased.
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 cost per week is
A. $1,000. B. $1,600. C. $2,000. D. $3,600.