Explain how the dollar price of an imported good may change even though the foreign production cost of that product remains unchanged.
What will be an ideal response?
The dollar price depends on two things: the price of that product in the foreign country and the price of that country’s currency in terms of dollars. If the price of the product remains the same in the country, the dollar price of the product may still rise because the price of that country’s currency in dollar terms might rise. If the value of the dollar has depreciated against that country’s currency, it will take more dollars to purchase the product even though its domestic price is unchanged.
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Issuing stocks with little or nothing to back them up is described as “plowing back.”
Answer the following statement true (T) or false (F)
According to Coase, firms
a. exist because the entrepreneur must prevent shirking b. should not exist c. should not exist if all participants in a market have perfect information d. exist because of the transaction costs of coordinating many resources through markets e. increase production costs and should therefore be limited
Economic growth can be illustrated by: a. a movement along the production possibilities curve
b. a movement from a point on the production possibilities curve to a point inside the production possibilities curve. c. an inward shift of the production possibilities curve. d. an outward shift of the production possibilities curve.
the amount of additional aggregate demand needed to achieve full employment after allowing for price-level changes
What will be an ideal response?