In the above figure, new expectations of booming business conditions and a higher expected profit will
A) shift the demand for loanable funds curve leftward.
B) shift the demand for loanable funds curve rightward.
C) have no effect on the demand for loanable funds curve.
D) make the demand for loanable funds curve become horizontal.
B
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Voluntary export restraints
A) have the same effect as an import ban. B) violate the spirit of international trade agreements. C) are illegal under the international trading rules. D) all of the above.
Refer to Table 23-4. Given the consumption schedule in the table above, the marginal propensity to consume is
A) 0.5. B) 0.6. C) 0.75. D) 0.8.
The following list contains items that are related to aggregate demand and/or aggregate supply.1)Government Spending 2)Consumer Expectations 3)Degree of Excess capacity 4)Personal Income Tax Rates 5)Productivity 6)National Income Abroad 7)Business Taxes 8)Domestic Resource Availability 9)Price of Imported Products 10)Profit Expectations on Investments Refer to the above list. Changes in which of the above two factors would most likely cause a change in aggregate supply?
A. 1 and 5 B. 8 and 9 C. 5 and 7 D. 3 and 10
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. In the short run, if the restaurant shuts down, its losses will equal its ________ costs of ________.
A. variable; $1,600 B. fixed; $1,000 C. total; $3,600 D. fixed; $2,000