Are the wages of the pilots marginal costs or sunk costs to an airline trying to decide whether to add a late-night flight from Seattle to San Francisco? They are
A) marginal costs because pilots are indispensable to the flight.
B) sunk costs if the pilots will receive no additional compensation for the flight.
C) marginal costs because they will be paid after the flight rather than before.
D) sunk costs because pilots' wage rates are determined by a contract already existing.
B) sunk costs if the pilots will receive no additional compensation for the flight.
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Democratic administrations generally are relatively more concerned about which of the following?
A) reducing government expenditures B) reducing the rate of inflation C) reducing the unemployment rate D) balancing budget deficits E) balancing trade deficits
An increase in government spending causes the:
a. Monetary base to fall. b. Monetary base to either rise or fall, depending on the state of the economy. c. No change in the monetary base. d. Monetary base to rise.