During the course of a week, McDonald's has enough time to hire or layoff workers, but it does not have enough time to expand its kitchen or add an additional seating area. In this situation, McDonald's:
a. has no fixed costs.
b. is in the short run.
c. suffers an economic loss.
d. earns a large profit.
Question 2
Which of these partly accounts for the long-term growth in production in the U.S. economy?
a. An increase in government spending
b. An increase in the availability of resources
c. A reduction in federal taxes
d. A gradual but consistent increase in the price level
e. A general optimism about the future and the pioneering spirit of America
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