Q: If GDP is expected to increase at a steady rate of 3
If GDP is expected to increase at a steady rate of 3% per year, how many years would it take for living standards to double? a. 10 b. 20 c. 24 d. 30
See AnswerQ: Break-even quantity is a point where a. the
Break-even quantity is a point where a. the level of profit is maximized. b. the level of cost is minimized. c. only variable costs are covered. d. there are zero profits.
See AnswerQ: In the short run, a firm’s decision to shut down should
In the short run, a firm’s decision to shut down should not take into consideration a. avoidable costs. b. variable costs. c. fixed costs. d. MCs
See AnswerQ: When economists speak of “marginal”, they mean a.
When economists speak of “marginal”, they mean a. opportunity b. scarcity c. incremental d. unimportant
See AnswerQ: Managers undertake an investment only if a. Marginal benefits of
Managers undertake an investment only if a. Marginal benefits of the investment are greater than zero b. MCs of the investment are greater than marginal benefits of the investment c. Marginal benefits...
See AnswerQ: A firm produces 500 units per week. It hires 20 full
A firm produces 500 units per week. It hires 20 full-time workers (40 hours/week) at an hourly wage of $15. Raw materials are ordered weekly and they costs $10 for every unit produced. The weekly cos...
See AnswerQ: Total costs increase from $1500 to $1800 when a firm
Total costs increase from $1500 to $1800 when a firm increases output from 40 to 50 units. Which of the following is true if MC is constant? a. FC = $100 b. FC = $200 c. FC = $300 d. FC = $400
See AnswerQ: Which of the following is not an example of a process designed
Which of the following is not an example of a process designed to combat moral hazard problems? a. Banks include restrictive covenants in loan agreements. b. Universities have student’s complete evalu...
See AnswerQ: A manager of a clothing firm is deciding whether to add another
A manager of a clothing firm is deciding whether to add another factory in addition to one already in production. The manager would compare a. the total benefits gained from the two factories to the t...
See AnswerQ: After massive promotion of Rihanna’s latest music album, the producers reacted
After massive promotion of Rihanna’s latest music album, the producers reacted by raising prices for her albums. This implies that promotion expenditures made the album demand a. more elastic. b. uni...
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