Refer to Scenario 9.7 below to answer the question(s) that follow. SCENARIO 9.7: Julio borrowed $80,000 from his great aunt to open a coffee stand at a local flea market. He agrees to pay his great aunt a 5% yearly return on the money she lent him. His other yearly fixed costs equal $16,000. His variable costs equal $60,000. He sold 50,000 cups of coffee during the year at a price of $3.00 per cup.Refer to Scenario 9.7. Julio's total fixed costs equal
A. $4,000.
B. $16,000.
C. $20,000.
D. $80,000.
Answer: C
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Which of the following is NOT correct?
A.) The Hawai'ian island chain will subduct in approximately 40 my. B.) The newest Hawai'ian island, Lo'ihi, should reach the surface in around 10,000 years. C.) Measured from the seafloor to its summit, Mauna Kea is the tallest mountain on Earth. D.) The formation of the island of Hawaii took less than 1 my.
Total wages paid to labor are maximized when workers are hired up to the point where the
A. Marginal wage equals zero. B. Market wage equals the marginal factor cost. C. Demand for labor equals the marginal factor cost. D. Marginal wage is equal to the market wage.
As pizza topped with barbecue chicken became popular at specialty restaurants, Pizza Hut introduced a similar pizza. This imitation illustrates:
A. innovation. B. invention. C. creative destruction. D. diffusion.
Refer to the graph below. Assume that the economy is initially in equilibrium at the intersection of AD1 and AS1. Suppose that there is economic growth which shifts AS1 to AS2. If the application of a monetary rule is designed to shift AD1 to AD3, but because of pessimistic business expectations AD1 only shifts to AD2, then mainstream economists would suggest that the actions to be taken to avoid deflation would be to implement a(n):
A. Expansionary fiscal policy and a tight money policy
B. Contractionary fiscal policy and a tight money policy
C. Expansionary fiscal policy and an easy money policy
D. Contractionary fiscal policy and an easy money policy