Which of the following probably has the highest start-up costs?
a. a restaurant belonging to a fast-food chain
b. a feature-length motion picture production by a major studio
c. a bookstore that specializes in travel books
d. a theatrical production by a local theater group
Ans: b. a feature-length motion picture production by a major studio
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If market price is greater than or equal to the minimum of AVC but below the minimum of AC, then
A) the firm will shut down. B) the firm will operate because its loss is less than if it shut down. C) revenue is lower than variable costs. D) profit is positive and so the firm will operate.
Social Security is a mixture of distinct programs; each has a different source of funding
Indicate whether the statement is true or false
The gold standard is a type of
A) fixed exchange rate system. B) flexible exchange rate system. C) floating exchange rate system. D) managed exchange rate system.
Economic growth caused by increased employment creates a trade-off between income and
a. present-day living standards b. research and development expenditures c. investment in physical capital d. future living standards e. leisure time