If a dollar buys less coffee in the U.S. than in Kenya, then
a. the real exchange rate is greater than 1; a profit might be made by buying coffee in Kenya and selling it in the U.S.
b. the real exchange rate is greater than 1; a profit might be made by buying coffee in the U.S. and selling it in Kenya.
c. the real exchange rate is less than 1; a profit might be made by buying coffee in Kenya and selling it in the U.S.
d. the real exchange rate is less than 1; a profit might be made by buying coffee in the U.S. and selling it in Kenya.
a
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An effective minimum wage creates a surplus of labor and increases the level of unemployment.
Answer the following statement true (T) or false (F)
?Refer to Exhibit 15-5. In the game:
a. ?the dominant strategy of General Mills is to set a high price.
b. ?the dominant strategy of Kellogg's is to set a low price.
c. ?the dominant strategy of Kellogg's is to set a high price.
d. ?neither firm has a dominant strategy.
According to the text, a country with a considerable amount of economic freedom will experience
A. low levels of political freedom. B. dead capital. C. negative rates of per capita income growth. D. positive rates of per capita income growth.
The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, the deadweight loss equals
A) C + E. B) A + B + C. C) C. D) zero.