(Consider This) An otherwise unprofitable motel located on a largely abandoned roadway might be able to stay open for several years by:
A. increasing its nightly room rates.
B. reducing or eliminating its annual maintenance expenses.
C. charging room rates that exceed marginal revenue.
D. eliminating its fixed costs, including its opportunity costs.
Answer: B
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Jacob pays $5,000 to paint his house because pollution from a nearby factory damaged the paint. To the factory, the $5,000 cost is
A) a private cost and not an external cost. B) an external cost and not a private cost. C) both a private cost and an external cost. D) neither a private cost nor an external cost. E) a private benefit because viewers will benefit from watching the extra hour of the show.
A factor that helps to determine the demand for the dollar in the foreign exchange market is
A) the expected future exchange rate. B) the expected future interest rate. C) the amount of U.S. imports. D) the supply of U.S. dollars.
Marginal cost tells us the
a. value of all resources used in a production process. b. marginal increment to profitability when price is constant. c. amount by which total cost rises when output is increased by one unit. d. amount by which output rises when labor is increased by one unit.
he Social Security Program began during the administration of
A. Franklin D. Roosevelt. B. Harry S. Truman. C. Dwight D. Eisenhower. D. John F. Kennedy.