If the marginal cost of flying the next flight is zero and one passenger is on the plane and has paid $50,
A) fixed cost would still be covered.
B) the passenger should be given a bus ticket.
C) losses would get bigger.
D) the next flight should be flown.
D
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Sumo wrestling tournaments typically have 66 wrestlers. Each wrestles 15 matches. A wrestler who has a winning record (eight wins or more) is guaranteed to rise in the official rankings; a wrestler with a losing record falls in the rankings
Suppose the last match of a tournament is between Wrestler A, who has won eight matches so far and Wrestler B, who has won seven. If moral hazard is a serious problem in sumo wrestling, who do you think is more likely to win this match?
In 1865, Congress raised the tax on state bank notes to 10 percent of the value of notes in circulation. This tax:
a. ended the dual banking system in the U.S. b. was less than the tax on national bank notes. c. was rescinded in 1870. d. was avoided through the use of deposits.
Refer to the above graph. Which factor will shift AD1 to AD2?
A. An increase in real interest rates. B. An increase in household indebtedness. C. An increase in national income abroad. D. An increase in business taxes.
Answer the following statement true (T) or false (F)
1) Rational individuals may make different choices because their preferences and circumstances differ. 2) Choices entail marginal costs because resources are scarce. 3) The production possibilities curve shows various combinations of two products that an economy can produce when achieving full employment. 4) The production possibilities curve shows various combinations of two products that an economy can produce when achieving full employment.