Julia Is Driving Down Interstate 95 on Her Way from New

question 140

Multiple Choice

Julia is driving down Interstate 95 on her way from New England to Florida and sees a billboard saying "South of the Border Restaurant and Motel is just 100 miles away." Julia has never heard of South of the Border before.After seeing the sign,she will most likely:

• A) reject the idea immediately.
• B) increase the speed she is driving so she can get there sooner.
• C) call and cancel reservations she made at another hotel.
• D) keep track of the miles so she'll know how soon she will be there.
• E) continue with her trip,doing nothing as a result of seeing the billboard.

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Definitions:

Automobile Driving

The operation and control of a car, including the mastery of various techniques and understanding of road rules for safe transportation.

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Moral Hazard

The situation where one party in an agreement is tempted to take undue risks because the negative consequences of the risk will be suffered by the other party.

Efficient Level

The optimal point of production or operation where costs are minimized and productivity or utility is maximized.