Some Highways Have One Lane;others Have Two,three,or More

question 164

Multiple Choice

Some highways have one lane;others have two,three,or more.If each lane costs $10 million per mile,an economist assumes that the total benefit of a three-lane highway must be _____ million per mile.

• A)less than $10
• B)$10 to $20
• C)$20 to $30
• D)$30 or more

Understand the utilization of the Big Mac index in evaluating purchasing power parity and exchange rates.

Examine reasons and implications of foreign nations financing U.S. consumption and debts.

Differentiate between facts and myths regarding the economic health and policies of countries.

Appreciate the dynamics of exchange rates between currencies and their impact on international trade and travel.

---

Definitions:

Government Bonds

Securities issued by a government to finance its expenditures, offering a fixed rate of return over a specific period.

Foreign Bonds

Bonds issued in a domestic market by a foreign entity, in the domestic market's currency.

National Debt

The total amount of money that a country's government has borrowed, through various means, and has not yet repaid.

Current Government Expenditures

The total spending by a government on goods, services, and debt interest within a given fiscal period, excluding capital expenditure.