Find the real exchange rate for the following case: Assume that the representative basket of European goods costs 150 euros and the representative U.S
basket costs $90, and the dollar/euro exchange rate is $0.80 per euro, then the price of the European basket in terms of U.S. basket is:
[(0.80 $/euro) (150 euro per a European basket)]/[(90 $/U.S. basket)] = 1.33 U.S. baskets/European basket.
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The labor force divided by the working age population equals the:
A. participation rate. B. unemployment rate. C. population rate. D. employment rate.
Which is the most accurate statement?
A. The authority to run welfare programs resides mainly in the states. B. The authority to run welfare programs resides mainly in the federal government. C. When the 1996 welfare reform passed, it immediately removed 3 million people from the welfare rolls. D. The welfare reform law of 1996 will virtually abolish welfare by the year 2008.
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206 The opportunity cost of making a calculator for Smith is ________ and for Jones it is ________.
A. 0.6 computers; 1.2 computers B. 1 computer; 0.5 computers C. 10 computers; 20 computers D. 0.10 computers; 0.05 computers
What are the three basic characteristics of monopolistic competition?
a. homogeneous product; few sellers; free entry b. product differentiation; many sellers; free entry c. product differentiation; few sellers; difficult entry d. homogeneous product; few sellers; difficult entry