Mary buys cell-phone services from a company that charges $30 per month. For that $30 she is allowed 600 minutes of free calls and then pays 25 cents per minute for any calls above 600 minutes. Mary has used 300 minutes this month so far. What is her marginal cost per minute of making two more calls lasting 10 minutes each?
A. $0
B. $2.50
C. 25 cents
D. 4 cents
Answer: A
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An increase in real GDP causes the demand for real money balances to
A) rise. B) fall. C) remain unaffected. D) rise, fall, or remain unaffected depending on the interest rate at the time.
According to Baumol and Blinder, from the demand side a decrease in the price level causes aggregate expenditures to
a. fall, resulting in a lower level of equilibrium income. b. fall, resulting in a higher level of equilibrium income. c. rise, resulting in a higher level of equilibrium income. d. rise, resulting in a lower level of equilibrium income.
What is the estimated effect of unemployment insurance on the period of unemployment?
a. It shortens the period of unemployment. b. It lengthens the period of unemployment. c. It negates an individual’s unemployment status. d. It has no effect on the period of unemployment.
If a nation has “cheap labor,”
A. it can still benefit from trade. B. other nations can still compete with it. C. it cannot have a comparative advantage in everything. D. All of the above are true.