Related to the Economics in Practice on page 176: When there are only a few empty cabins on a large cruise ship, the marginal cost of adding extra passengers to occupy those cabins
A. will primarily depend on the number of customers waiting to travel.
B. will be negative.
C. is probably very low.
D. is generally quite high.
Answer: C
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Assume the Fed wants to lower the interest rate. How does the Fed lower the interest rate in the short run?
What will be an ideal response?
The more profit a monopolist makes, the more inefficient is the monopoly outcome.
Answer the following statement true (T) or false (F)
Elaine’s firm is in a perfectly competitive industry. Why doesn’t Elaine try to sell more of her product by lowering its price below the market price?
a. Her demand curve is not elastic. b. Doing so would be considered unethical price chiseling. c. Her competitors would not allow it. d. She can sell all she wants at the market price.
Which of the following is true of the unit of account function of money? a. It makes money durable in nature
b. It makes the relative values of goods and services more easily known. c. It implies that money should be made of something valuable. d. It implies that money can be used to save up purchasing power. e. It implies that money is more easily counted than goods.