Hannah and Marla plan to drive cross-country in Marla’s car after graduation and split the estimated $300 gas costs and 30 hours of driving. Their friend Sarah asks to join the trip and split the costs. Which of the following accurately describes the difference between average and marginal costs of adding a third traveler to the trip?
a. Average costs are increased from $300 to $450; marginal costs are reduced to 10 hours of driving per person.
b. Average costs of travel remain the same; marginal costs are increased by Sarah’s share of beverages and snacks.
c. Average costs fall from $150 to $100 per person; marginal costs are minimal and offset by Sarah’s help with driving.
d. Average costs are increased by adding a third person; marginal costs are unchanged because the car is already going.
c. Average costs fall from $150 to $100 per person; marginal costs are minimal and offset by Sarah’s help with driving.
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The immediate (two-day) exchange of one currency for another is a
A) forward transaction. B) spot transaction. C) money transaction. D) exchange transaction.
Scott used $4,000,00 . from his savings account that paid an annual interest of 5% to purchase a hardware store. After one year, Scott sold the business for $4,100,000 . An Economist calculated his profit to be:
a. $300,000 b. $100,000 c. -$100,000 d. -$200,000
The four major components of aggregate demand are consumption, investment, government purchases of goods and services, and net exports
a. True b. False Indicate whether the statement is true or false
Why is NAFTA a free-trade area requiring rules of origin rather than a customs union?
a. A free-trade agreement allows politically sensitive tariffs of each nation to remain unchanged. b. A customs union also requires rules of origin. c. The overall level of U.S. tariffs was much higher than the overall level of tariffs in Mexico and Canada. d. The overall levels of tariffs in Canada, Mexico, and the United States are similar, making rules of origin irrelevant.