Long- Distance Travel by Bus Is an Inferior Good

question 141

Multiple Choice

Long- distance travel by bus is an inferior good. As people's incomes increase and other things remain the same, you predict that the

• A) demand for long- distance travel by bus will increase as the price of long- distance travel by bus falls.
• B) demand for long- distance travel by bus will decrease and the price will rise.
• C) price of long- distance travel by bus will fall.
• D) price of long- distance travel by bus will fall and the demand for long- distance travel by bus will increase.

Distinguish between replacement and new venture projects in terms of cash flow analysis.

Define and calculate opportunity costs in the context of capital budgeting.

Recognize the role of terminal values and terminal cash flows in project evaluation.

Assess project proposals considering estimating inaccuracies and subjective benefits.

---

Definitions:

Genetic Code

A set of rules by which information encoded in genetic material (DNA or RNA sequences) is translated into proteins by living cells.

One-cell Organisms

Living entities consisting of a single cell, capable of performing all necessary life functions, also known as unicellular organisms.

Specific Protein

A protein with a unique structure and function, distinguishing it from other proteins by its specific biological activity or regulatory role.

Amino Acids

Organic molecules that form the basis of proteins, featuring both amino and carboxylic acid functional groups.