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
e. opportunity cost
A
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The meaning of "terms of trade" is
A) the price of a country's exports divided by the price of its imports. B) the amount of exports sold by a country. C) the price conditions bargained for in international markets. D) the quantities of imports received in free trade. E) the tariffs in place between two trading countries.
Which of the following will decrease aggregate demand?
a. exports rising faster than imports b. exports falling faster than imports c. exports rising the same amount as imports d. exports rising and imports falling
If the marginal propensity to consume is 0.75 and investment spending increases by $200 billion, by how much will equilibrium output increase?
a. $350 billion b. $150 billion c. $200 billion d. $266.7 billion e. $800 billion
The U.S. Air Force pays a Turkish citizen $30,000 to work on a U.S. base in Turkey. As a result,
a. U.S. government purchases increase by $30,000; U.S. net exports decrease by $30,000; and U.S. GDP is unaffected. b. U.S. government purchases increase by $30,000; U.S. net exports are unaffected; and U.S. GDP increases by $30,000. c. U.S. government purchases, net exports, and GDP are unaffected. d. U.S. government purchases are unaffected; U.S. net exports decrease by $30,000; and U.S. GDP decreases by $30,000.