Pat can either drive to work, which takes half an hour and uses $1.50 worth of gas, or take the bus, which takes an hour and costs $1.00. How should Pat get to work?
A. Pat should take the bus because it costs $0.50 less than driving.
B. Pat should take the bus if saving half an hour is worth $0.50 or more.
C. Pat should drive because it saves half an hour relative to taking the bus.
D. Pat should drive if saving half an hour is worth $0.50 or more.
Answer: D
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In the dynamic aggregated demand and aggregate supply model, if AD shifts faster than AS
A) stagflation occurs. B) deflation occurs. C) disinflation occurs. D) inflation occurs.
Over the last 100 years or so, the U.S. economy has grown annually at an average rate of:
A. 1 %. B. 3 %. C. 4 %. D. 2 %.
Between 1994 and 2000 the poverty rate ____ and the number of people on welfare _____.
Fill in the blank(s) with the appropriate word(s).
(Table: Firm's Willingness) Look at the table Firm's Willingness. If the price of a report is $12, what is the value of producer surplus for the firm?
A) $42 B) $16 C) $27 D) $21