A bus is mostly filled with passengers and ready to travel from Los Angeles to San Francisco. At the last minute, a person comes running up to the bus and takes a seat. The change in the bus company's total cost as a result of transporting one more passenger on this trip is called:
A. marginal cost.
B. average total cost.
C. variable cost.
D. fixed cost.
Answer: A
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How Monetary Policy affects the Economy?
Which of the following is a tool the Federal Reserve System can use to regulate the quantity of money?
i. changing the discount rate ii. conducting open market operations iii. changing the required reserve ratio A) i only B) ii only C) i and ii D) ii and iii E) i, ii, and iii
In the classical model with an open economy, an increase in government purchases may not cause complete crowding out, but crowding out will be complete worldwide
a. True b. False
If a country has a comparative advantage in the production of a good, its resources are better suited to the production of that good than are the resources of other countries.
Answer the following statement true (T) or false (F)