Maurice can drive or fly from Jacksonville, Florida to Atlanda, Georgia, for a one-day business trip. If he drives, he will be able to work three hours once he arrives in Atlanta, whereas traveling by plane will enable him to work eight hours. His expected income from each hour of work in Atlanta is $30 . If Maurice is a rational decision maker, he will fly if and only if the price differential
(air cost minus driving cost) is less than
a. $30.
b. $90.
c. $150.
d. $240.
C
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If the ratio of the dollar price of a U.S. toy to the dollar price of a Chinese toy is less than one:
A) retailers in the U.S. should buy the toys from both Chinese suppliers and American suppliers. B) retailers in the U.S. should not buy the toys from both Chinese suppliers and American suppliers. C) retailers in the U.S. should buy the toys from Chinese suppliers. D) retailers in the U.S. should buy the toys from American suppliers.
Refer to the graph below for the United States economy. The Growth trend line for the United States is a real GDP growth rate of a little over
a. 1 percent.
b. 3 percent.
c. 5 percent.
d. 7 percent.
The relationship between the MPS and the MPC is such that:
a. MPC - MPS = 1 b. MPS/MPC = 1 c. MPS + MPC = 1 d. 1 - MPC = MPS
Productivity growth in the United States has been ____________ the productivity growth in Europe in the period between 1995 and the present.
Fill in the blank(s) with the appropriate word(s).