The Get-There-Safe Bus company incurs an average cost of $45 for each passenger it carries on its trip from Atlanta to Chattanooga. In advance of a particular trip, four seats remain unsold. The bus company could increase its profit only if it
a. charged any ticket price above $0 for the four remaining seats.
b. charged at least $11.25 for each of the four remaining seats.
c. charged at least $45 for each of the four remaining seats.
d. paid four people to occupy the four remaining seats.
a
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If real GDP is less than potential GDP, then the money wage rate ________, and aggregate supply ________ so that the price level ________
A) rises; decreases; rises B) does not change; increases; falls C) falls; decreases; rises D) rises; increases; falls E) falls; increases; falls
In the above table, the trade balance on goods and services for Country X is ________ billion dollars
A) +25 B) -100 C) +100 D) -25
Which of the following is an example of an injection into the circular flow of income and expenditure?
a. Net taxes b. Saving c. Transfer payments d. Government borrowing e. Disposable income
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions become more negative (or less positive). b. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions remain the same. c. The quantity of real loanable funds per time period and reserve-related (central bank) transactions remain the same. d. The quantity of real loanable funds per time period rises, and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.