Why is the supply of oil more price elastic in the long run?
A) New deposits are found.
B) Better extraction technology is developed.
C) Firms have the ability to change the amount of all inputs.
D) All of the above.
D
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Aggregate supply increases when:
a. wage rates decrease while the economy's price level remains unchanged. b. resource availability is reduced. c. there are fewer workers. d. there is less capital and the price level remains unchanged. e. there are increased inflationary expectations of labor.
If the real interest rate is 5% and the inflation rate is 3%, then the nominal interest rate is 8%
a. True b. False Indicate whether the statement is true or false
Which of the following can issue bonds?
A) the government B) corporations C) government agencies D) all of the above
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. In the long run, the restaurant will want to
A. operate and expand. B. go out of business. C. shut down but not go out of business. D. operate but not expand.