Which of the following statements is correct?
a. Purchasing Power Parity occurs when nominal interest rates are the same in two countries.
b. Purchasing Power Parity means that the nominal exchange rate is 1 to 1.
c. Purchasing Power Parity means that two countries have the same standard of living.
d. Purchasing Power Parity means that the real exchange rate equals 1 to 1.
.D
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Which of the following is an example of a sunk cost?
A) The cost incurred in painting a new office space B) The wage paid to workers in a mill C) The cost of raw materials used in a factory D) The cost of electricity used in the office
Since housing generally represents a large part of most household budget, the elasticity of demand for housing is likely to be large.
Answer the following statement true (T) or false (F)
If economics is correct in its assumption that people are rational, why then would anyone choose to smoke cigarettes?
Which of the following would be an example of a negative externality?