If a certain automotive part can be purchased in Mexico for 60 pesos or in the United States for $6.25 and if the nominal exchange rate is 8 pesos per U.S. dollar, then the automotive part:
A. is more expensive in the United States.
B. is less expensive in Mexico.
C. is less expensive in the United States.
D. costs the same in Mexico and the United States.
Answer: C
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Which of the following is NOT an example of an opportunity cost?
A) By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class. B) Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year. C) Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment. D) By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college.
When real GDP increases, people demand
A) the same quantity of real money. B) less real money. C) more real money. D) more money in nominal terms but less in real terms.
How do income and wealth change over a person's lifetime? How does this affect the distribution of income at a point in time?
What will be an ideal response?
Suppose market demand and supply are given by Qd = 100 - 2P and QS = 5 + 3P. The equilibrium quantity is:
A. 45. B. 62. C. 81. D. 92.