Suppose that a typical basket of goods costs 400 pesos in Mexico and 25 pounds in Britain: the market exchange rate is 25 pesos per pound. Using purchasing power parity, the appropriate exchange rate for comparing the incomes of the two countries is:
A. 10 pesos per pound.
B. 0.25 pesos per pound.
C. 16 pesos per pound.
D. 25 pesos per pound.
Answer: C
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If the reserve requirement is 0.2 and demand deposits are $800 (assume no earlier loans), the banks can lend out
a. $800 b. $80 c. $640 d. $160 e. $960
A payroll tax is a
a. fixed number of dollars that every firm must pay to the government for each worker that the firm hires. b. tax that each firm must pay to the government before the firm can hire workers and operate its business. c. tax on the wages that firms pay their workers. d. tax on all wages above the minimum wage.
Refer to the information provided in Table 33.4 below to answer the question(s) that follow. Table 33.4GermanyChileBeerWineBeerWine(cases)(cases)(cases)(cases)75030 060152412453018 24304512 361560 6 48075 0 60 Refer to Table 33.4. Chile should specialize in and export ________, and Germany should specialize in and export ________.
A. wine; beer B. beer; beer C. beer; wine D. wine; wine
It is important to place particular stress on the role of women in rural development programs because
(a) women have received less training in the past. (b) women perform a large majority of the work in the rural sector. (c) women tend to allocate more resources to their children's health and education. (d) all of the above.