Refer to Scenario 9.2 below to answer the question(s) that follow. SCENARIO 9.2: Tom borrowed $40,000 from his parents to open a donut stand. He agrees to pay his parents a 5% yearly return on the money they lent him. His other yearly fixed costs equal $10,000. His variable costs equal $25,000. He sold 40,000 dozen donuts during the year at a price of $2.00 per dozen.Refer to Scenario 9.2. Tom's total fixed costs equal
A. $1,000.
B. $10,000.
C. $12,000.
D. $21,000.
Answer: C
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Behavioral economics:
A. draws on insights from psychology to expand models of individual decision making. B. draws on insights from anthropology to clarify models of individual decision making. C. draws on insights from business theory to expand models of household behavior. D. is the least disputed field of economics.
Factors of production are:
A.) the laws that regulate manufacturers. B.) the technological innovations available to companies. C.) the resources used to create output. D.) the waste left over after goods are produced.
Mechanisms that manufacturers can use to deal with misaligned retailer incentives include
a. setting a maximum retail price b. allowing many retailers to sell the product in each market c. compensating retailers' sales staff for demonstrating the product d. eliminate manufacturer staff that was demonstrating the product in stores
Which of the following does not explain why the U.S. economy has been more stable after 1946 than before?
A. A shift from manufacturing to services. B. A large government sector. C. A laissez faire approach. D. Automatic stabilizers.