What is meant by the geography hypothesis? How does it differ from the culture hypothesis?
What will be an ideal response?
The geography hypothesis claims that differences in geography, climate, and ecology are responsible for major differences in prosperity observed across the world. It differs from the culture hypothesis as the culture hypothesis claims that different values and cultural beliefs are the fundamental causes of the differences in prosperity across the world.
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At the minimum efficient scale
A) all possible economies of scale have not been exhausted. B) marginal cost is at its minimum. C) the firm has achieved the lowest possible average cost of production. D) any increases in the scale of operation will encounter further economies of scale.
Suppose that the one-year forward price of euros in terms of dollars is equal to $1.113 per euro. Further, assume that the spot exchange rate is $1.05 per euro, and the interest rate on dollar deposits is 10 percent and on euro it is 4 percent
Under these assumptions A) interest parity does not hold. B) interest parity does hold. C) it is hard to tell whether interest parity does or does not hold. D) Not enough information is given to answer the question. E) interest parity fluctuates.
The widespread availability of e-mail has likely increased the price elasticity of demand for the services of the U.S. Postal Service
a. True b. False Indicate whether the statement is true or false
According to liquidity preference theory, equilibrium in the money market is achieved by adjustments in
a. the price level. b. the interest rate. c. the exchange rate. d. real wealth.