The entry of new firms into a competitive market will
a. increase market supply and increase market price.
b. increase market supply and decrease market price.
c. decrease market supply and increase market price.
d. decrease market supply and decrease market price.
b
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Suppose the cost of flying a 100-seat plane for an airline is $50,000 and there are 10 empty seats on a flight. The marginal cost of flying a passenger is
a. $50. b. $500. c. $50,000. d. This cannot be determined from the information given.
The most potent argument against globalization is that _____________.
Fill in the blank(s) with the appropriate word(s).
Assuming an upward-sloping aggregate supply curve, when aggregate demand decreases, unemployment
A. Increases, and the price level decreases. B. Increases, and the price level increases. C. Decreases, and the price level decreases. D. Decreases, and the price level increases.
To get personal income from national income, one must:
a. subtract out retained earnings, Social Security taxes, and transfer payments, and add in corporate business taxes. b. subtract corporate profits and Social Security taxes, and add in transfer payments and other income. c. subtract retained earnings, corporate business taxes, and transfer payments, and add in Social Security taxes. d. subtract out corporate business taxes, Social Security taxes and transfer payments, and add in retained earnings.