A U.S. importer purchases 5,000 British pounds for $10,000. The rate of exchange is
A. $1 = 1.
B. $1 = 2.
C. $1 = .5.
D. $2 = 1.
B. $1 = 2.
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Refer to Figure 7.1. Suppose the city passes an ordinance banning loud music, and this directly impacts Angus's legal ability to play his bagpipes. In response to this ordinance, Angus agrees to pay Dudley $225 each day to not call the police
Compared to the original scenario where there was no ordinance banning loud music, in this situation the size of the economic pie will A) shrink. B) not change. C) grow. D) More information is needed to determine the size of the economic pie.
If the percentage change in the quantity demanded is not zero but is less than the percentage change in the price, demand is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic. E) perfectly inelastic.
A production possibilities frontier is a line or curve that:
A. shows all the possible combinations of outputs that can be produced using all available resources. B. shows what can be produced when all available resources are efficiently used. C. shows the best combinations of outputs that can be produced using all available resources. D. explains why societies make the choices they do.
When a product's price increases from $800 to $1,200, the quantity demanded decreases from 11,000 to 9,000 . Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to: a. 0.5
b. 2.0. c. 0.25. d. 4.0.