If a commercial airline starts offering maxi-saver fares at huge discounts to passengers who purchase tickets at least 30 days in advance and agree to stay over a Saturday night, what is the most likely effect upon first-class passenger service?
A) First-class fares will rise somewhat to compensate for the loss on other fares.
B) The demand for first-class service may fall somewhat because the price of a substitute good has decreased substantially.
C) The marginal cost of first-class service will rise somewhat because the total cost must be allocated among all passengers.
D) The marginal revenue from first-class service will rise somewhat because first-class service is now more clearly a superior good.
B
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A) a monopoly. B) a monopsony. C) an oligopoly. D) a competitive market.
If the nominal interest rate is higher than the inflation rate, the value of your savings:
A. will increase. B. will decrease. C. should remain about the same. D. cannot be assessed without knowing the beginning balance of savings.
In contrast to the structural deficit, the cyclical deficit reflects
A. Changes in discretionary fiscal policy. B. Fluctuations in economic activity. C. Fiscal policy decisions. D. Changes in the "full-employment" deficit.
Unemployment rates differ widely among various groups in the population.
Answer the following statement true (T) or false (F)