Adam spent $10,000 on new equipment for his small business, "Adam's Fitness Studio." Membership at his fitness center is very low and at this rate, Adam needs an additional $12,000 per year to keep his studio open. Which of the following is true
A) The fixed cost of running the studio is $22,000.
B) The $10,000 Adam spent on equipment is the total cost of starting the business and the $12,000 he'll need to continue operations is a marginal cost.
C) The variable cost of running the studio is $22,000.
D) The $10,000 Adam spent on equipment is a fixed cost of business and the $12,000 he'll need to continue operations is a variable cost.
D
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Refer to Table 2-20. If the two countries specialize and trade, who should export rice?
A) They should both be exporting rice. B) Thailand C) Japan D) There is no basis for trade between the two countries.
In the short run,
a. higher productivity means higher cost. b. lower productivity means lower cost. c. lower productivity means higher cost. d. productivity and cost are unrelated.
Suppose that the U.S. imposed an import quota on beef. Sales of U.S. beef producers would
a. rise and exports of other industries would increase. b. rise and exports of other industries would decrease. c. not change, exports of other industries would increase. d. not change, exports of other industries would decrease.
The larger the mpc, the ________ the income-expenditure multiplier and the ________ the effect of a change in autonomous spending on short-run equilibrium output.
A. smaller; smaller B. smaller; larger C. larger; smaller D. larger; larger