The National Restaurant Association States That the Restaurant Industry Has

question 105

Multiple Choice

The National Restaurant Association states that the restaurant industry has an economic effect of more than $1.7 trillion annually in the United States,with every dollar spent in restaurants generating an estimated total of $2.05 in spending in the economy.This indicates that the spending multiplier for the restaurant industry is equal to

• A)1.21.
• B)1.70.
• C)2.05.
• D)4.25.

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Definitions:

MC

In economics, refers to marginal cost, which is the increase in total cost that arises from producing an additional unit of output.

Marginal Cost

The expense incurred from the production of an extra single unit of a product or service.

Total Cost

The complete cost of production that involves both fixed and variable costs to produce a given level of output.

Cherry Orchard

A cultivated area where cherry trees are grown for fruit production.