Allegiant Air holds a natural monopoly on most of the routes it serves in the United States. Allegiant Air's marginal revenue will ________ when its total revenue ________
A) equal $0; is maximized
B) be negative; is maximized
C) be positive; is maximized
D) inelastic; is increasing
E) elastic; is increasing
A
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If the wage rate is $10 per hour and one worker can currently produce 2 units of output per hour, then the marginal cost of production is
a. $5 b. $10 c. $20 d. the answer cannot be determined from the information given.
Fiscal policy is the management of aggregate demand through changes in taxes and government spending
a. True b. False Indicate whether the statement is true or false
The money creation formula is oversimplified because it assumes that
a. every recipient of a bank loan will redeposit the proceeds in another bank. b. loan recipients will not take any of the proceeds in cash. c. every bank lends out all excess reserves. d. All of the above are correct.
A general rule of political economy in a democracy is that when small groups are helped by a government action and large groups are hurt by that action by an equal and offsetting amount, policies tend to reflect:
A. the small group's interest. B. neither group's interest over the other. C. the large group's interest. D. the interest of a free market.