Which of the following is the most likely to cause the price of air travel to rise?
a. Lower prices and improved service in Amtrak (the nation's passenger railroad).
b. Improved productive efficiency resulting from airline mergers.
c. Higher airplane fuel costs.
d. Reports that air travel safety is deteriorating.
c. Higher airplane fuel costs.
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If retail managers are ordering extra merchandise from their wholesale distributors, then it is probably true that
A. total output is greater than total spending. B. price levels are decreasing. C. inventory levels are increasing. D. inventory levels are decreasing.
Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so, how?
What will be an ideal response?
The difference between a fixed tax and a variable tax is that
A. fixed taxes can never be changed, but variable taxes can be changed. B. a change in fixed taxes has no effect on aggregate demand, but a change in variable taxes has an impact. C. a variable tax changes when GDP changes, but a fixed tax does not change with GDP. D. a variable tax can be changed easily, whereas changing fixed taxes requires a constitutional amendment.
The change in total variable cost which accompanies one extra unit of output is
A) the average total cost. B) the average variable cost. C) the average fixed cost. D) marginal cost.