When the CAB allowed airlines to charge high prices on longer, more efficient routes as long as they maintained service on shorter, unprofitable routes, it was allowing
A. Profit sharing.
B. Cross-subsidization.
C. Profit subsidization.
D. Substitute pricing.
Answer: B
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Robinson Crusoe divides his time between catching fish and gathering fruit. Part of his production possibilities frontier is given in the above table
If Mr. Crusoe is on his PPF and he increases the amount of fruit he gathers from 56 to 90 pounds, the opportunity cost is A) 37 pounds of fish. B) 31 pounds of fish. C) 17 pounds of fish. D) 34 pounds of fruit. E) 90 pounds of fruit.
Point Y is in the _____ phase of the business cycle.
A. prosperity
B. recovery
C. depression
D. recession
The Phillips curve is a statistical relationship that was misrepresented as showing
A. disequilibrium outcomes of uncoordinated policy. B. alternative equilibrium points that the economy could achieve. C. the unemployment rates necessary to close a recessionary gap. D. the increases in interest rates from different inflation rates.
If virtual reality headsets are considered substitutes for game consoles, an increase in the price of virtual reality headsets would, all else equal
A) increase the demand for game consoles. B) decrease the demand for game consoles. C) increase the quantity of game consoles demanded. D) decrease the quantity of game consoles demanded.