If the purchasing power of the dollar is greater than the purchasing power of the euro, purchasing power parity predicts that the exchange rate will
A) not fluctuate and stay constant in the long run.
B) increase if the exchange rate is greater than 1 euro per dollar.
C) decrease if the exchange rate is less than 1 euro per dollar.
D) be equal to the relative purchasing power across the currencies in the long run.
D
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Adam Smith’s book, one of the first systematic treatments of economics, was entitled
A. The Plan of the Ages. B. The General Theory of Money, Taxes, and Income. C. The Wealth of Nations. D. Principles of Economics. E. Concepts in Moral Philosophy.
A good or service or a resource is nonexcludable if
A) it is possible to prevent someone from enjoying its benefits. B) it is not possible to prevent someone from benefiting from it. C) its use by one person decreases the quantity available for someone else. D) its use by one person does not decrease the quantity available for someone else.
For a perfectly competitive firm, average revenue is equal to
A) marginal cost. B) the market price. C) total revenue. D) average fixed cost.
Refer to the information provided in Table 23.7 below to answer the question(s) that follow. Table 23.7
Refer to Table 23.7. If aggregate output equals ________, there will be a $100 billion unplanned decrease in inventories.
A. $200 billion B. $400 billion C. $600 billion D. $800 billion