The Average Price of Gasoline in Your Neighborhood Is $3

question 106

Multiple Choice

The average price of gasoline in your neighborhood is $3.53 per gallon. Your neighbor Diana tells you that you can "save a lot" by frequenting a gas station 20 miles outside your neighborhood where the price of gasoline is $3.46 per gallon However, she cautions you that there usually long lines at that station. Is her suggestion beneficial to you?

• A) Yes, since gasoline is a necessity for car owners, the total cost savings would be relatively substantial.
• B) No, if one factors in the non-monetary opportunity costs (driving time and waiting in line), it could prove more costly to go to the lower-priced gasoline station.
• C) Yes, the lower price of gasoline at the rival station increases my purchasing power and enables me to consume more of other goods.
• D) No, my friend is misled; clearly, the lower priced gasoline must be of inferior quality and could damage vehicles.

---

Definitions:

Global Managers

Executives or managers who possess the knowledge, skills, and sensitivity required to effectively manage and lead organizations in the global marketplace.

On-the-job Training

Training delivered to employees while they are performing their regular job duties, allowing them to learn by doing with real-time feedback.

International Commuters

Individuals who travel across national borders for work purposes regularly but maintain their residence in their home country.

Host Country

The country in which a company that is based in another country operates, especially through subsidiaries or branches.