On December 29th, the Cost of a Skiing Trip to Finse

question 44

Multiple Choice

On December 29th, the cost of a skiing trip to Finse, Norway, was 6,500 krone. Two weeks later, the American dollar appreciated against the Norwegian krone. If the price of the trip in Norway remains the same, _____.

• A) an American skier living in Florida will now view this trip as cheaper compared to before
• B) an American skier living in Florida will now view this trip as highly expensive compared to before
• C) an American skier living in Florida will now view this trip as of the same value as before
• D) an American skier living in Florida will now value this trip less as compared to before
• E) an American skier living in Florida will no longer take this trip

---

Definitions:

Equilibrium

A state in a market where supply equals demand, and there is no incentive for prices to change, resulting in market stability.

Economic Rent

The extra amount earned by a resource above what would be needed to keep that resource in its current use, often due to scarcity or unique qualities.

Factor Of Production

Essential resources used in the production of goods and services, such as labor, capital, land, and entrepreneurship.

Supply Curve

The Supply Curve is a graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing and able to sell at each price level.