If a basket of goods costs $100 in the United States and 300 pesos in Mexico, and if the exchange rate is $1 = 5 pesos, then the dollar price of the basket of goods in Mexico is:
a. $250.
b. $56.
c. $60.
d. $75.
Answer: c. $60.
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Whenever marginal cost is positive, average cost curves are upward sloping.
Answer the following statement true (T) or false (F)
Refer to Table 1-6. Using marginal analysis, how many hours should Ivan extend his hours of operations?
A) 2 hours B) 3 hours C) 4 hours D) 5 hours E) 6 hours
Both competitive firms and monopolies produce at the level where marginal cost equals marginal revenue. Then, other things remaining the same, why is price lower in a competitive market than in a monopoly?
What will be an ideal response?
According to Okun's Law, if the natural rate of unemployment is 5% and the actual unemployment rate is 4%, what is the level of full-employment output if output equals $10,125 billion?
A. $10,226 billion B. $10,025 billion C. $9926 billion D. $10,328 billion