What is pricing to market? Where is it most prevalent?
What will be an ideal response?
Pricing to market is the practice of adjusting export prices in response to exchange rate changes so as to limit changes in the prices paid by importers. This behavior has been found to be generally increasing and especially prevalent amongst Japanese and German exporters.
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Which of the following is TRUE?
A) Economic efficiency occurs if the maximum feasible amount of output is achieved from a given quantity of inputs. B) Economic efficiency depends only on what is feasible. C) If production is technologically efficient then it must be economically efficient. D) None of the above statements are correct.
The U.S. unemployment insurance program
A) decreases the level of frictional unemployment. B) pays the unemployed a benefit equal to twice the average wage. C) increases the amount of time the unemployed spend searching for a job. D) eliminates structural unemployment.
According to the law of demand
A) people buy more of a good when the price rises. B) people buy more of a good when their income rises. C) people buy more of a good when the relative price rises. D) people buy more of a good when the price falls.
The macroeconomic policy planner’s job is made difficult because of
A. inaccurate multiplier estimates. B. timing problems. C. disagreements over potential GDP. D. uncertain forecasts. E. All of the above are correct.