John wants to buy a new television set. He can either buy it in the US and pay $1200 or buy it in Canada and pay CAD$1300 . At the exchange rate of 1CA$=US$0.92, ignoring any other costs, he would
a. Prefer buying in the US
b. Prefer buying in Canada
c. Be indifferent about where he buys his television
d. None of the above
b
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A rent ceiling
A) increases the quantity of rental units supplied. B) cannot change the market price. C) set above equilibrium price has no effect. D) generally aims at insuring that landlords receive a higher rent than would otherwise be the case.
What is government failure?
What will be an ideal response?
As air is a _____, pollution tends to occur
a. common resource b. private good c. club good d. merit good
An increase in productivity will cause which of the following according to the price-setting behavior of firms?
A) a reduction in prices set by firms B) an increase in the real wage paid by firms C) a reduction in the markup set by firms D) all of the above E) none of the above