Refer to Scenario 9.3 below to answer the question(s) that follow. SCENARIO 9.3: 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 per cent 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 $5 on average per meal. Refer to Scenario 9.3. If the restaurant were to shut down, losses per week would be
A. $1,000.
B. $1,600.
C. $2,000.
D. $3,600.
Answer: C
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
If the interest rate on student loans ________, students will ________
A) falls from 6 percent to 1 percent; not change their saving but will change their investment B) rises from 6 percent to 12 percent; increase their consumption before it becomes too expensive C) rises from 6 percent to 12 percent; increase their saving in order to pay back the loan sooner D) falls from 6 percent to 1 percent; increase their saving in order to pay back the loan sooner E) None of the above answers is correct.
The minimum point on the average variable cost curve is called the loss-minimizing point
Indicate whether the statement is true or false
A firm in a perfectly competitive market faces a demand curve that is
a. perfectly elastic. b. relatively elastic. c. perfectly inelastic. d. relatively inelastic.