An oil price decrease would
A. increase short-run aggregate supply.
B. increase aggregate demand.
C. decrease aggregate demand.
D. decrease short-run aggregate supply.
Answer: A
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The Leontief paradox can be summarized as the finding that U.S. exports tend to come from capital-intensive industries, while U.S. imports are produced using relatively labor-intensive techniques
Indicate whether the statement is true or false
Compared to an efficient perfectly competitive industry, the monopolist will
A) produce less output at a higher total cost. B) produce less output and charge a higher price. C) produce more output at a higher price and higher profit. D) produce more output at a lower price.
The demand curve facing a monopolistically competitive firm is generally
A. steeper than the demand curve that would face a perfectly competitive firm in the same industry. B. less elastic than the demand curve that would face a monopoly in the same industry. C. steeper and more elastic than the demand curve that would face a perfectly competitive firm in the same industry. D. flatter than the demand curve that would face a monopoly in the same industry.
Refer to Scenario 9.5 below to answer the question(s) that follow. SCENARIO 9.5: 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 percent 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 $3 on average per meal. Refer to Scenario 9.5. Weekly total revenue is
A. $1,600. B. $2,000. C. $2,700. D. $3,600.