Which of the following will shift the aggregate demand curve outward?
a. tax cuts and government spending cuts
b. tax increases and government spending increases
c. tax cuts and government spending increases
d. tax increases and government spending increases
c
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Credit cards are money because they serve the three functions of money
a. True b. False Indicate whether the statement is true or false
Ex-London School of Economics student Mick Jagger sang, "You can't always get what you want, but if you try sometime, you just might find you can get what you need." Another statement of the basic economic principle expressed in this lyric is that
a. rational decisions are not always possible. b. you can allocate your resources to what gives you the highest value. c. you can create the supply to meet your own demand. d. you can maximize social welfare by making optimal decisions.
Refer to Scenario 9.3 below to answer the question(s) that follow. SCENARIO 9.3: 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 per cent 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 $5 on average per meal. Refer to Scenario 9.3. Total variable costs per week are
A. $600. B. $1,000. C. $1,600. D. $2,000.
Refer to the tables below. Assume that prior to specialization and trade Germany and the United States both choose production possibility C. Now if each specializes according to its comparative advantage, the resulting gains from specialization and trade will be:
Autos and chemicals are in million of units in the following production possibilities tables:
A. 8 million units of autos
B. 6 million units of autos
C. 6 million units of autos and 8 million units of chemicals
D. 8 million units of autos and 6 million units of chemicals