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. $1300
b. higher than the average cost of previous passengers
c. $600
d. $160
e. $60
E
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In the loanable funds framework, the ________ curve of bonds is equivalent to the ________ curve of loanable funds
A) demand; demand B) demand; supply C) supply; supply D) supply; equilibrium
The effect of an import quota on the domestic market is to shift the:
a. demand curve to the right by the amount of the quota. b. demand curve to the left by the amount of the quota. c. supply curve to the right by the amount of the quota. d. supply curve to the left by the amount of the quota. e. consumers' marginal utility curves if they prefer foreign goods to domestic goods.
The Federal Reserve System was created in
a. 1776 b. 1894 c. 1913 d. 1930 e. 1936
Which of the following is an example of a normative, as opposed to positive, statement?
a. The growth rate of the economy last year was higher than any other year in the last decade. b. The federal government reduced spending in the last quarter of the fiscal year. c. The Federal Reserve Bank adjusted interest rates in response to the lower-than-expected growth rate of the economy. d. The federal government should decrease unemployment benefits to stimulate the economy out of the recession.