Related to the Economics in Practice on page 155: Suppose you own a truck and use it to deliver merchandise to retailers and hire a driver to make such deliveries. At higher rates of speed the truck gets fewer miles per gallon of gas. Holding all else constant, as the price of gasoline continues to rise
A. you will instruct your driver to drive slower.
B. you will ask your driver to change their driving in any way.
C. you will make more deliveries to cover the increasing cost of fuel.
D. you will instruct your driver to drive faster.
Answer: A
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Historically, investment in stocks have been a prudent investment
A. because stock prices have stayed roughly constant over time. B. because stock prices have generally risen over time. C. because stocks no longer carry any underlying risk. D. because stocks can easily be converted to corporate bonds.
Which of the following statements is not accurate about the 1920s?
a. There was a significant increase in mass production and mass marketing. b. There was a significant increase in urbanization. c. The ability of many Americans to afford consumer goods dropped sharply. d. Consumer credit policies were developed and instituted on a large scale for the first time.
Aggregate supply (AS) refers to:
a. the total quantity of inputs that firms will request and purchase. b. the total quantity of output that firms will produce and sell. c. the smallest quantity of output that firms will produce and destroy. d. the total quantity of inputs that firms will request and waste.
When studying world stock indexes, we observe that:
A. the indexes are very comparable. B. most of the world's indexes are price-weighted. C. the indexes are comparable but only in percentage terms. D. the S&P 500 is largest in terms of index value.