Moving along the aggregate production function, all of the following are held constant EXCEPT
A) labor.
B) capital.
C) human capital.
D) technology.
A
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The organization that settles trade disputes between countries is the
A) World Bank. B) World Trade Organization. C) International Monetary Fund. D) United Nations.
The In the News article in the text titled "Fiscal Policy in the Great Depression" discusses fiscal spending and taxation. During the Great Depression, the federal government pursued a policy of fiscal restraint that led to
A. A decrease in aggregate demand. B. An increase in aggregate supply. C. A decrease of the federal deficit. D. The retirement of bonds, which reduced the federal debt.
Direct shipment of wine to individuals is illegal. Some wineries want the law revoked. They argue that the ability to ship directly to consumers helps small wineries and that shipping bans unfairly protect home-state wineries, raising prices to consumers. Others argue that the bans allow states to collect tax revenues and to keep wine from being sold to minors. What would most economists say about whether this ban should stay or be eliminated?
A. Because there would be people harmed, lifting the ban would not be Pareto optimal. Therefore, eliminating the ban is a bad policy. B. There are benefits to lifting the ban but also costs, and unless we know these costs and benefits, we cannot decide. C. Lifting the ban would make taxes less equitable. Therefore, the ban should remain. D. Economists would argue that competition is good and the ban prevents competition. Therefore, the ban should be lifted.
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. Weekly total revenue is
A. $1,600. B. $2,000. C. $3,600. D. $5,400.