Under a fixed exchange rate system, if the inflation rate of the United States exceeds the inflation rate of other nations, the
A) dollar will depreciate. B) dollar will appreciate.
C) United States will develop a trade surplus. D) United States will develop a trade deficit.
D
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Which of the following statements is TRUE?
A) Labor is always a variable input. B) Capital is always a fixed input. C) Materials are always variable inputs. D) None of the above.
Over _______% of all banks are members of the FDIC.
Fill in the blank(s) with the appropriate word(s).
In the factor market, households
A. buy resources. B. sell resources. C. are both buyers and sellers of resources. D. are neither buyers nor sellers of resources.
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. The restaurant's weekly economic profit is
A. zero. B. positive. C. negative. D. break-even.