The foreign exchange rate refers to
A. the price at which purchases and sales of foreign goods take place.
B. exports minus imports.
C. the amount of one currency that must be paid to obtain one unit of another currency.
D. the ratio of exports to imports.
C. the amount of one currency that must be paid to obtain one unit of another currency.
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In surveying their alumni, State U's economics department discovered that ramen noodle consumption declined once students graduated and found jobs. One conclusion the survey team might draw from this result is that:
A. ramen noodles are an inferior good. B. there is excess demand for ramen noodles. C. college graduates have a high reservation price for ramen noodles. D. the equilibrium price for ramen noodles is too high.
Gary usually does not donate for charity. However, he donated money for an environmental awareness campaign launched by his friend. This is an example of ________
A) rationalism B) pure altruism C) impure altruism D) liberalism
Suppose a roll of paper towels costs $6 at Sam's Quick Stop, a local quick stop, and the same roll of paper towels costs $2 at Big Supplies, a large, retailer located in a more remote location. If a customer's total cost of travel to Sam's Quick Stop is $3 and is $6 to Big Supplies, which of the following is true?
A) It is cheaper for the consumer to buy the paper towels at Big Supplies. B) It is more expensive for the consumer to buy the paper towels at Big Supplies. C) The consumer is indifferent as to where they buy the paper towels. D) It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop.
Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then
A) Chile will produce more computers after trade begins with Brazil. B) Brazil will produce more timber after trade begins with Chile. C) Chile will produce more timber after trade begins with Brazil. D) Brazil will completely specialize in computers once trade begins with Chile.