Which of the Following Is an Example of an Economic

question 37

Multiple Choice

Which of the following is an example of an economic incentive to improve asset utilization?

• A) Fixed costs are relatively easy to cover because not much capital is tied up in service facilities
• B) Incremental costs of extended hours may be covered by increased revenue and decreased crowding
• C) Advertising expenditures can be reduced because of the substantial increases in positive word-of-mouth
• D) Workers are relatively less expensive when they work more hours
• E) The cost to keep lights on and equipment running is not easily recouped by a few extra patrons.

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Definitions:

Inelastic

Describing a situation where the demand or supply for a product does not significantly change in response to price changes.

Excise Tax

Excise tax is a tax on the sale or use of specific products or transactions, often levied to discourage certain behaviors or raise revenue.

Shifted

The movement of a supply or demand curve in a market due to changes in factors such as consumer preferences, production costs, or number of suppliers.

Corporate Income Tax

A tax imposed on the net income of a corporation that is derived from its business activities.