Other things equal, a marginal propensity to import of 0.8 ...

[charchew]

Other things equal, a marginal propensity to import of 0.8 implies that a 100 million increase in domestic income will lead to an 80 million decrease in net exports.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

The opportunity cost of an airplane flight:
 a. differs across passengers only to the extent that each traveler pays a different airfare.
 b. is identical for all passengers and equal to the number of hours a particular flight takes.
 c. differs across passengers to the extent that both airfares paid and the highest valued use of travel time vary.
  d. is equal to the cost of a bus ticket, the next best form of alternative transportation to flying.

[matt95]

Answer to Question 1

False

Answer to Question 2

c

[charchew]

TYSM

[bigsis44]

Excellent