Consider the accompanying figure representing the labor market below.
In the absence of any government intervention, the equilibrium wage is ________ per hour, and the equilibrium employment level is ________ workers per hour.
A. $4; 200
B. $12; 200
C. $8; 400
D. $12; 600
Answer: C
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A capital intensive production process is one in which:
A. highly specialized capital is needed to produce the good. B. a part of the production process must be done by capital and cannot be substituted. C. a lot of capital is hired relative to the total inputs needed to produce the good. D. total costs will be minimized if capital is the primary factor of production used.
A positive economic statement is
a. something good or desirable b. a call for improvement c. a statement of opinion d. a statement of fact e. a suggestion for policy
Shift to the left or right for supply: number of sellers increases
What will be an ideal response?
Refer to Scenario 9.10 below to answer the question(s) that follow. SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe 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 $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.Refer to Scenario 9.10. In the short run, if the cafe decides to stay open, it will make weekly operating profits of
A. -$2,800. B. $0. C. $2,800. D. $5,400.