For a given real exchange rate, a nominal appreciation of the domestic currency will result from
A) a decline in the terms of trade.
B) an increase in the price of the foreign good.
C) an increase in the price of the domestic good.
D) an increase in the domestic rate of inflation.
B
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The Consumer Price Index (CPI) measures inflation for every individual
A) True, the weights used in calculating the CPI are adjusted for every individual in the country. B) True, people all face the same prices and therefore face the same inflation. C) False, the CPI uses weights based on how much each product represents in the typical household budget. D) False, the CPI doesn't measure inflation.
If capital increases by two units, and MRTS is 1, then what is the MPL?
A) 2 B) 1/2 C) 1 D) Not enough information given.
The tasks performed by the chef at your favorite restaurant could be categorized as
A) a good. B) an economic good. C) a service or intangible good. D) All of the above are correct.
What is the expected revenue from developing the simplified software?
a. $4million b. $6million c. $8million d. $10million