If the price of a sofa is $800 in the U.S. and 2400 pesos in Argentina, and the exchange rate is 4 pesos per dollar, what is the real exchange rate?
a. 3
b. 4/3
c. 3/4
d. None of the above is correct.
b
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Do all valuable items have price tags?
A. No, because some valuable items have no opportunity cost. B. Yes, because everything has its price. C. Yes, because price is the measure of opportunity cost. D. No, some have no explicit price on them. E. Yes, because only items that can be sold in markets have value.
Refer to the figure above. What is the equilibrium quantity of credit when the credit demand curve is CD1 and the credit supply curve is CS1?
A) $50 B) $20 C) $40 D) $30
The specialty of Lloyd's of London is
A) annuities. B) hedge funds. C) mutual funds. D) reinsurance.
The perfectly competitive firm faces
A) a downward sloping demand curve. B) a horizontal supply function. C) perfectly elastic demand. D) constant marginal costs.