Which of the following statements is true?
A. Thanks to the popularity of deregulation in the 1960s, by the end of the decade the airlines were free to set their own prices and select their own routes.
B. Before deregulation, the Interstate Commerce Commission sometimes forced truckers to take roundabout routes and to return with empty trucks from long hauls.
C. Airfares have stayed about the same after deregulation as they were before deregulation took place.
D. Deregulation in various industries that took place in the 1980s has been an unqualified success, except in the airlines industry.
B. Before deregulation, the Interstate Commerce Commission sometimes forced truckers to take roundabout routes and to return with empty trucks from long hauls.
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Suppose the government has a $900 billion budget deficit. If the government borrows $560 billion to finance this deficit and finances the rest by printing money, the amount of new money created will be
A) $340 billion. B) $560 billion. C) $900 billion. D) $1,460 billion.
If a bond pays $50 a year to its holder and you buy it for $200, what is your interest rate?
What will be an ideal response?
If AVC is $10 when P = MC, a firm
A) will have positive economic profits if price is greater than $10. B) is producing too little output. C) should shut down if price is less than $10. D) is experiencing economies of scale.
New classical economists contend that both the short-run and long-run aggregate supply curves are vertical
a. True b. False Indicate whether the statement is true or false