Suppose an airline ticket from Charlotte to Dallas costs $525 . A bus ticket is $325 . Traveling by plane will take 5 hours, compared with 25 hours by bus. Thus, the plane costs $200 more but saves 20 hours of time . Other things constant, an individual will gain by choosing air travel if, and only if, each hour of her time is valued at more than
a. $10 per hour.
b. $13 per hour.
c. $20 per hour.
d. $105 per hour.
A
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When interest rates are artificially lowered through expansionary monetary policy,
A) longer-term investment projects appear to be more profitable. B) production of capital goods increases. C) the economy experiences an unsustainable boom phase. D) the economy will likely fall into a recession in the longer run. E) all of the above tend to occur.
U.S. potential GDP is the value of the goods and services produced in the United States ________
A. in the reference base year B. when the U.S. unemployment rate is zero C. when the U.S. economy is at full employment D. when the U.S. inflation rate is zero
Suppose the nominal price of gasoline was $0.90 per gallon in 1987. To convert this value to the real price of 1987 gasoline in 2012 dollars, we should:
A) multiply by the 1987 CPI and divide by the 2012 CPI. B) multiply by the 2012 CPI and divide by the 1987 CPI. C) not do anything because this is the real price in 2012 dollars. D) none of the above
The U.S. labor movement started
A) with local craft unions composed of workers who engaged in a particular trade or skill, such as baking, carpentry or plumbing. B) during the Civil War. C) after World War I. D) with the Knights of Labor, an organized group of both skilled and unskilled workers.