Which of the following statements BEST describes a limitation of the Big Mac Index?
A) Profit margins vary by the strength of competition, which affects relative prices.
B) The theory of PPP incorrectly assumes that there are barriers to trade.
C) The Big Mac represents all possible commodities and services.
D) Taxes have no effect on Big Mac prices.
A) Profit margins vary by the strength of competition, which affects relative prices.
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Explain how a tax cut effects employment, labor productivity, and potential GDP
What will be an ideal response?
Households will choose to save more if
A) income is expected to decrease in the future. B) current disposable income increases. C) Both answers A and B are correct. D) Neither answer A nor B is correct.
The racial profile of colonial South Carolina:
a. was typical of the colonies as a whole. b. was closer to that of the French and British West Indies than to that of its neighboring colonies. c. was dominated by whites until nearly 1750. d. indicates that it had a higher concentration of blacks than any colony except Virginia.
The table below gives the quantities and prices for 2005 and 2015 for an economy that produces just two goods: sailboats and coconuts. Quantities ProducedPrices?2005201520052015Sailboats1020$500$525Coconuts2,0002,400$1$2 For this economy that produces just sailboats and coconuts, and with 2005 as the base year, nominal GDP was approximately ________ times larger in 2015 than it was in 2005.
A. 2.19 B. 1.34 C. 1.65 D. 1.77