If the price of the Brazilian real is 60 cents and a U.S. resident purchases a Brazilian-manufactured item for 60,000 real, there will be
A) a quantity demanded of 60,000 real and a quantity supplied of $60,000.
B) a quantity demanded of 60,000 real and a quantity supplied of $36,000.
C) a quantity demanded of 60,000 real, but we cannot determine the effect in the market for dollars.
D) a quantity supplied of 60,000 real and a quantity demanded of 60,000 yen.
Answer: B
You might also like to view...
The River Rouge plant was built by the Ford Motor Company in the 1920s to produce the company's Model A car. Which of the following is evidence that the River Rouge plant suffered from diseconomies of scale?
A) Model A cars made at the River Rouge plant failed to earn a profit. Ford reduced the average cost of the Model A by cutting its employees' wages. B) Model A cars made at the River Rouge plant failed to earn Ford a profit. Ford eventually constructed smaller plants to make the Model A at a lower average cost. C) Model A cars made at the River Rouge plant failed to earn a profit because the price of steel used to manufacture the Model A rose when workers in the steel industry went on strike. D) Despite an expensive advertising campaign the Model A did not earn the company a profit.
Four firms agree to operate as a monopoly and charge the monopoly price of $10 for their product and (jointly) produce the monopoly quantity of 50,000 units. If the competitive price for the product is $6, under the Clayton Act these four firms face treble damages of ________.
A) $600,000 B) $1,000,000 C) $3,000,000 D) $200,000
Which type of demand for money causes the demand for money curve to slope downward?
a. Speculative demand. b. Precautionary demand. c. Transactions demand. d. Foreign-exchange demand.
Compare the advantages and disadvantages of marginal and average cost pricing for natural monopolies.
What will be an ideal response?