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.
C. a lot of capital is hired relative to the total inputs needed to produce the good.
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Refer to the scenario above. What is likely to be the impact on Firm A's sales if Firm B decides to sponsor the event while Firm A decides not to sponsor the event?
A) A 5% increase in sales B) A 7% increase in sales C) A 0% increase in sales D) A 2% increase in sales
Economists can accept limits on gambling because
A. addiction psychology distorts the gambler's ability to make rational choices and gamblers impose costs to innocent third parties. B. no one wins in gambling. C. gamblers impose costs on innocent third parties. D. addiction psychology distorts the gambler's ability to make rational choices.
The following graph shows average fixed costs, average variable costs, average total costs, and marginal costs of production.
Average variable cost is minimized when output equals:
A. 21 units. B. 25 units. C. 12 units. D. 6 units.
The portion of the budget deficit or surplus that would exist even if the economy were at its potential income is called the cyclical deficit or cyclical surplus.
Answer the following statement true (T) or false (F)