Which of the following is most likely to be a variable cost for a firm?
A. the interest payments made on loans
B. the monthly rent on office space that it leased for a year
C. the franchiser's fee that a restaurant must pay to the national restaurant chain
D. the payroll taxes that are paid on employee wages
Answer: D
You might also like to view...
The sequence of events following an increase in the federal deficit would be higher interest rates, a(n)
A. depreciating dollar, and a larger current account deficit. B. depreciating dollar, and a smaller current account deficit. C. appreciating dollar, and a larger current account deficit. D. appreciating dollar, and a smaller current account deficit.
A product's price elasticity of demand is likely to be greater
A) if it only has a few substitutes. B) if consumers spend a small proportion of income on the product. C) the less time consumers have to adjust to price changes. D) if the product is a luxury good rather than a necessity. E) Both answers C and D are correct.
The slope of the planned expenditure line is
A) autonomous consumption. B) the marginal propensity to save. C) autonomous planned spending. D) the marginal propensity to consume.
What effect would taxation have on real consumption spending when government spending is autonomous?
A) Taxation reduces real consumption spending. B) Taxation increases real consumption spending. C) Taxation causes both real consumption spending and planned real saving to increase. D) None of the above is correct.