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, suppose the cost of flying a 200 seat plane for an airline is a) sell the ticket because themarginal benefit exceeds the marginal cost
$100,000 and there are 10 empty seats on a flight. If the
marginal cost of flying a passenger is $200 and a standby
passenger is willing to pay $300, the airline should
For which of the following individuals with the opportunity c) A famous, highly paid actor who wants to take time away from show business to finish
cost of going to college be highest? college and earn a degree
People are willing to pay more for a diamond in for a bottle of b) The marginal benefit of an extra diamond far exceeds the marginal benefit of an extra
water because bottle of water
in the short run, which of the following rates of growth in the d) 8% per year
money supply is likely to lead to the lowest level of
unemployment in the economy?
To improve living standards, policymakers should b) formulate policies designed to increase productivity.
Which of the following is an example of an externality? b) Malik's bird chirps loudly during the night, waking his neighbors
The "invisible hand" refers to b) how the decisions of households and firms lead to desirable market outcomes
When the government implements programs such as b) Equality is increased in efficiency is decreased
progressive income tax rates, which of the following is likely to
occur?
Which of the following is true? a) efficiency refers to the size of the economic pie; equality refers to the how pie is
divided
Which of the following is not an example of the group c) universities offer fewer online classes when they generate more revenue at the same
responding to an incentive? cost and traditional classes
While pollution regulates you the benefit of a cleaner c) people face trade-offs
environment and the improved health that comes with the the
regulations, and the cost of reducing the incomes of the
regulated firms is owners, workers, and customers. This
statement illustrates the principle that
A decrease in the price of a goodwill d) increase quantity demanded