The best explanation for the late 1994/early 1995 collapse of the Mexican peso and stock market is
(a) free movement of capital internationally is destabilizing for a developing country.
(b) portfolio investments were camouflaging overvalued exchange rates.
(c) debt for equity swaps had created imbalances in the ownership structure of the economy.
(d) the potential benefits of NAFTA had been oversold.
B
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Many economists consider medical care a superior good. Which of the following statements is true regarding a superior good?
a. Consumers want more of a superior good regardless of its price. b. When the price of a superior good increases, consumers demand more of it. c. As consumer income increases a larger percentage of that income is spent on superior goods. d. A superior good has an income elasticity of demand greater than one. e. Both c and d are true of superior goods.
Under a floating exchange-rate system, a country needs to pay more attention to the economic policies of the rest of the world
a. True b. False Indicate whether the statement is true or false
Agraria sends wheat to Cyberia in exchange for computers and technology goods. This is an example of
a. unidirectional trade. b. joint venture. c. barter. d. monetary exchange.
The capital stock is fixed at 5 units, the price of capital is $60 per unit, and the price of labor is $20 per unit. 
Based on the above, if the firm produces 60 units of output, what is average variable cost?
A. $2.67 B. $7.67 C. $20 D. $5 E. $57.50