Suppose you want to get to Orlando, Florida, for the week-long spring break. You can get there in two and one-half days by bus, and back in another two and one-half days. This will cost you $20 round-trip. You can fly there and back in four hours each way. This will cost $200 . Which of the following is not true?
a. It may be economically rational for you to go by plane rather than by bus.
b. Depending on what else you can do that week, it may be economically rational for you to not go at all rather than to go by bus.
c. The true cost of going to Orlando is either the time or the money you spend traveling, whichever it is you value more.
d. The more you'd enjoy Orlando, the more economically rational it becomes for you to fly there instead of taking the bus.
e. It is possible that it is rational for you to fly and rational for others to take the bus.
C
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In the Cournot model, a firm maximizes profit by selecting
A) its output, assuming that other firms keep their output constant. B) its price, assuming that other firms keep their price constant. C) its output, assuming that other firms will retaliate. D) its price, assuming that other firms will retaliate.
The removal of a price ceiling in a market results in:
a. an increase in the market price. b. a shortage in the market. c. over-production of the commodity and a surplus. d. a fall in the market price. e. abnormal profits for producers.
Suppose there is a reduction in consumer income and an increase in the price of jet fuel, an important resource used to produce air travel. If air travel is a normal good, how will these changes influence the price and quantity of air travel? The price of air travel will (be) ____ and quantity purchased will (be) ____
a. decrease; indeterminate b. increase; indeterminate c. decrease; decrease d. indeterminate; decrease
Jarrod says that the future value of $250 saved for one year at 6 percent interest is less than the future value of $250 saved for two years at 3 percent interest. Simon says that the present value of a $250 payment to be received in one year when the interest rate is 6 percent is less than the value of a $250 payment to be received in two years when the interest rate is 3 percent
a. Jarrod and Simon are both correct. b. Jarrod and Simon are both incorrect. c. Only Jarrod is correct. d. Only Simon is correct.