Standby passengers on airlines who pay low rates for seats benefit from the low price. How are the airlines affected?
a. They lose, because the standby passengers do not cover the full cost of the seats.
b. They gain, because the additional revenue covers the "fixed costs" of the flight.
c. They lose, because the gain of the passengers must necessarily come at the expense of the airline.
d. They benefit as long as the additional revenue from the passengers exceeds the marginal cost.
e. Uncertain, because economic theory says nothing about this sort of situation.
d
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Suppose 10 percent of the families receive 10 percent of the income, 20 percent of the families receive 20 percent of the income, and so forth. The Lorenz curve would be
A) a straight line at a 45-degree angle from the origin. B) a straight line at a 30-degree angle from the origin. C) the most bowed curve possible. D) the horizontal axis.
The minimum amount of reserves the Fed requires a bank to hold, based on a percentage of the bank's total deposit liabilities, is known as
a. excess reserves b. actual reserves c. the legal reserve requirement d. the Fed stipulation rate e. the countercyclical rate
A franchisee works than a salaried manager of company store because
a. Less, he doesn't get to keep the additional profits he generates b. Harder, he gets to keep the additional profits he generates c. Lesser, he is generally lazy d. Harder, he doesn't get to keep the additional profits he generates
In general, productivity levels are much higher in richer countries like the U.S
a. True b. False Indicate whether the statement is true or false