Billy Mac Tailor drives an 18-wheeler CG Carriers. He always stops at All Bright truck stops to buy diesel fuel. He is a preferred customer and gets a free meal and shower worth $10. But All Bright charges $12 more for a fill-up than most competitors. Which of the following is true?
A. There is a wealth transfer to Billy Mac Tailor, and CG Carriers has a wealth reduction of $12.
B. Billy Mac Tailor increases his income by $10 and CG Carriers also benefits.
C. CG Carriers has a wealth reduction of $2 even though they do not know about Tailor's actions.
D. CG Carriers gets a benefit of $22 because Tailor is a preferred customer.
Answer: A
You might also like to view...
In the above table, the average fixed cost of producing 15 units of output is
A) $0.50. B) $2.00. C) $6.66. D) $8.66.
Comparative advantage is
A. only for individuals and not countries. B. when a person can produce all goods more quickly than other people. C. when a person can produce a good at a lower opportunity cost compared to another person. D. when the production possibilities curve shifts outward to the right.
Graphically, demand-pull inflation is shown as a:
A. rightward shift of the AD curve along an upsloping AS curve. B. leftward shift of the AS curve along a downsloping AD curve. C. leftward shift of the AS curve along an upsloping AD curve. D. rightward shift of the AD curve along a downsloping AS curve.
Refer to the information provided in Table 23.10 below to answer the question(s) that follow. Table 23.10
Refer to Table 23.10. At an aggregate output level of $2,000 million, the unplanned inventory change is
A. -$800 million. B. -$200 million. C. $700 million. D. $800 million.