Purchasing power parity exists when domestic currency:
a. maintains a fixed exchange rate with foreign currency.
b. is not convertible into foreign currency.
c. buys more goods at home than abroad.
d. buys as many goods at home as it does abroad.
e. appreciates in value against foreign currency.
d
You might also like to view...
Which of the following is an impact of a rent ceiling set below the equilibrium rent?
A) Renters find apartments to rent more rapidly because the rent ceiling is lower. B) Landlords' incentives to provide apartments decrease. C) The supply of apartments increases as soon as the rent ceiling is imposed. D) A surplus of housing occurs. E) Search for apartments decreases because renters need no longer search for the apartment with the lowest rent.
The RAND Health Insurance Study
a. examined cross-section data to estimate the demand function for medical care. b. was the most extensive controlled experiment in health insurance ever conducted in the United States. c. like most economic studies, was based on individual decisions in voluntarily choosing health insurance coverage. d. was flawed due to severe self-selection bias. e. was set up to study medical outcomes when individuals were free to choose the type of health coverage they desired.
In the long run, if we observe firms in a competitive market earning economic profits, we know that this market is in long-run equilibrium
a. True b. False Indicate whether the statement is true or false
Suppose health-care reform Y makes it unlawful for insurance companies to deny insurance to persons with a preexisting disease and sets a fine for those people who do not buy insurance. It follows that if the fine is
A) larger than the benefits derived from not buying insurance right away, then people will not buy the insurance and pay the fine. B) smaller than the benefits derived from not buying the insurance right away, then people will not buy the insurance and pay the fine. C) larger than the benefits derived from not buying insurance right away, then people will buy the insurance right away and not pay the fine. D) b and c E) none of the above