Refer to Scenario 9.9 below to answer the question(s) that follow. SCENARIO 9.9: Sponsors invest $250,000 in a new greeting card business on the promise that they will earn a return of 10% per year on their investment. The business sells 52,000 greeting cards per year. The fixed costs for the business include the return to investors and $79,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($3,000 per week). The business is open 52 weeks per year.Refer to Scenario 9.9. The annual fixed costs for the business sum to
A. $25,000.
B. $79,000.
C. $104,000.
D. $208,000.
Answer: C
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
The World Bank specializes in making loans to
A) industrialized nations. B) communist nations. C) developing nations. D) African nations.
Which of the following statements about a perfectly competitive market are TRUE?
I. The perfectly competitive industry faces an upward sloping labor supply curve. II. The individual firm in a perfectly competitive industry faces a perfectly elastic labor supply curve. A) I only B) II only C) both I and II D) neither I nor II
All of the following, except one, would serve to increase competition in an oligopoly. Which is the exception?
a. increased imports from foreign firms b. an increase in the minimum efficient scale c. an increase in the size of the market d. new technologies that reduce barriers to entry e. action by the U.S. Justice Department to break up large firms