American Airlines makes numerous nonstop flights from Chicago's O'Hare Airport to the airport at Dallas-Fort Worth. The distance between those two cities is 1,000 miles. The only variable cost, fuel, costs $.06 for each passenger-mile it flies. Bob, on his way to an emergency business meeting, buys a ticket in coach class for $1,300 at the very last minute. The marginal cost of flying Bob from Chicago to Dallas-Fort Worth is:
A. $60.
B. $160.
C. $600.
D. $1,300.
Answer: A
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Banks act as financial intermediaries by: a. bringing together car buyers and auto dealers
b. bringing together real estate brokers and home buyers. c. printing money for all to use. d. serving the credit needs of borrowers and the security needs of savers. e. selling shares of stock to investors.
Other things the same, a decrease in the price level makes the interest rate decrease, which leads to a depreciation of the dollar in the market for foreign-currency exchange
a. True b. False Indicate whether the statement is true or false
Refer to Figure 10.4. If the market was perfectly competitive, the consumer surplus would be:
A. $850. B. $625. C. $300. D. $100.
Under which of the following circumstances would private saving be positive in a closed economy?
A) Y = $6 trillion C = $2 trillion TR = $8 trillion G = $3 trillion public saving = $1 trillion B) Y = $10 trillion C = $5 trillion TR = $2 trillion G = $2 trillion public saving = $1 trillion C) Y = $8 trillion C = $2 trillion TR = $4 trillion G = $2 trillion public saving = $4 trillion D) Y = $9 trillion C = $5 trillion TR = $1 trillion G = $1 trillion public saving = $3 trillion