Suppose 500,000 yen buys a basket of goods in Japan. If, at the existing exchange rate, it costs more than 500,000 yen to buy the same basket of goods in the United States, then purchasing power parity implies that the:
A. dollar should cost more yen.
B. dollar is undervalued.
C. dollar should cost fewer yen.
D. yen is overvalued.
Answer: C
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A) always pay interest payments forever; always pay dividends forever B) have a fixed number of interest payments; have a fixed number of dividend payments C) may pay interest payments forever; have a fixed number of dividend payments D) have a fixed number of interest payments; may pay dividends forever
A patent
A) always gives rise to a monopoly. B) may not provide a barrier to entry. C) allows the patent owner to capture all of the consumer surplus. D) increases total welfare.
To change the definition of demand to the definition of supply, all we would need to do is change the word _____ to _____.
Fill in the blank(s) with the appropriate word(s).