Which of the following does purchasing-power parity imply?
a. The purchasing power of the dollar is the same in the U.S. as in foreign countries.
b. The price of domestic goods relative to foreign goods cannot change.
c. The nominal exchange rate is the ratio of U.S. prices to foreign prices.
d. All of the above are correct.
a
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A _____ of representative democracy is it _____
a. downside; increases decision-making costs b. benefit; increases decision-making costs c. downside; reduces decision-making costs d. benefit; reduces decision-making costs
In the case where cigarette firms conceal information about the negative externalities associated with cigarette smoking, the market is said to be characterized by
a. asymmetric information b. moral hazard c. social cost d. government failure e. greed
Which statement is true?
A. The first trustbusters were Presidents Franklin D. Roosevelt and Harry Truman. B. The merger of Exxon and Mobil oil companies was a vertical merger. C. The Supreme Court did not use the rule of reason in the ALCOA case of 1945. D. The trend toward concentration of business has declined ever since the passage of the Sherman Antitrust in 1890.
Exhibit 8-12 Marginal revenue and cost per unit curves
If price is equal to OD for the firm shown in Exhibit 8-12, total profit is maximized when:
A. output is X. B. output is Y. C. output is Z. D. output is greater than Z.