Jets Is the Currency of Tulatula

question 92

Multiple Choice

Jets is the currency of Tulatula. When Tom, an American traveler, visited Tulatula in 2008, he spent 150 jets per night for a hotel room. Three years later in 2011, he also spent 150 jets per night. However, the dollar appreciated over this period and the new exchange rate was 8.50 versus 7.50 in 2008. How did the change in the exchange rate affect the dollar price of the hotel room?

• A)The hotel room cost more in dollars in 2008.
• B)The hotel room cost less in dollars in 2008.
• C)There was no change since the price of the hotel room remained at 150 jets.
• D)The hotel room cost less in jets and more in American dollars.

---

Definitions:

Immigrant Workers

Immigrant workers are individuals who have moved from one country to another for the purpose of employment.

Substitute Resources

Productive inputs that can be used instead of other inputs in the production process; resources for which an increase in the price of one leads to an increase in the demand for the other.

Complementary Resources

Productive inputs that are used jointly with other inputs in the production process; resources for which a decrease in the price of one leads to an increase in the demand for the other.

Backflows

In a systems context, refers to the reverse flow of a liquid, gas, or other substance, counter to the intended or normal direction, which can create issues such as contamination.