What is the expected dollar rate of return on euro deposits if today's exchange rate is $1.167 per euro, next year's expected exchange rate is $1.10 per euro, the dollar interest rate is 10%, and the euro interest rate is 5%?
A) 10%
B) 11%
C) -1%
D) 0%
C
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If a price floor of $10 a bottle is imposed on wine from California,
a. all wine from California becomes more expensive. b. all wine from California becomes cheaper. c. the price of some wines will increase. d. the price floor will have no effect.
When can two countries gain from trading two goods?
a. when the first country can only produce the first good and the second country can only produce the second good b. when the first country can produce both goods, but can only produce the second good at great cost, and the second country can produce both goods, but can only produce the first good at great cost c. when the first country is better at producing both goods and the second country is worse at producing both goods d. Two countries could gain from trading two goods under all of the above conditions.
Exhibit 6A-3 Consumer equilibrium
?
Given the budget line and indifference curves shown in Exhibit 6A-3, at point Z:
A. Px exceeds Py. B. MUx = MUy. C. MRS = Px / Py. D. MRS = Py / Px.
The type of advertising that is used to induce a consumer to discover a previously unknown taste for an item is known as
A. experience advertising. B. persuasive advertising. C. false advertising. D. informational advertising.