The price of an airline ticket from Denver to Chicago costs $450. A bus ticket costs $150. Traveling by plane takes 2 hours compared with 32 hours by bus. Other things constant, Erica would gain by choosing air travel if, and only if, she values her time at more than
a. $5 per hour.
b. $9.38 per hour.
c. $10 per hour.
d. $300 per hour.
c. $10 per hour.
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Adhering to a strict fixed exchange rate system means that
a. no country will experience inflation or recession. b. each nation improves control over its money supply. c. each nation loses some control of its monetary policy and its domestic economy. d. each nation improves control over its fiscal policy and aggregate demand.
The United States has done very poorly at the high end of the value-added chain.
Answer the following statement true (T) or false (F)
Higher real interest rates in the United States (relative to foreign real interest rates) will lead to a(n) _____________________ of the dollar, a ____________ shift of the U.S. AD curve and a _________________ shift of the U.S. SRAS curve
A) appreciation; rightward; leftward B) appreciation; leftward; rightward C) depreciation ; rightward; leftward D) depreciation; leftward; rightward E) appreciation; rightward; rightward
Economic efficiency is achieved at a particular output level if:
A. average fixed cost is as low as possible. B. average total cost is as low as possible. C. average variable cost is as low as possible. D. marginal cost is as low as possible.