Propose that you work for Taco Bell and you advertise during American Idol. Their rating is 19. This is equal to 21.3 million TV's. American Idol charges $700,000 for a 30-second ad. If a meal contribution at Taco Bell is $0.60, how many purchases are required to break even for the ad costs?
a. 1,454,598
b. 700,000
c. 420,000
d. 1,116,667
Ans: d. 1,116,667
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A simple deposit multiplier equal to one implies a required reserve ratio equal to
A) 100 percent. B) 50 percent. C) 25 percent. D) 0 percent.
The law of demand states that there is
A) an inverse relationship between income and quantity demanded, ceteris paribus. B) a direct relationship between income and quantity demanded, ceteris paribus. C) no relationship between taste and quantity demanded, ceteris paribus. D) an inverse relationship between price and quantity demanded, ceteris paribus.
Which of the following statements is correct?
a. In an economy-wide sense, property rights are an important prerequisite for the price system to work. b. Property rights give people the ability to exercise authority over the resources they own. c. Based on the available evidence, the existence of well-established and well-enforced property rights appears to be associated with an enhanced standard of living. d. All of the above are correct.
The market supply curve for any particular category of labor is
A. steeper than the horizontal summation of the VMPL curves for that category of labor. B. equal to the horizontal summation of the VMPL curves for that category of labor. C. likely to be backward-bending. D. likely to be upward sloping.