Suppose a 10-mile taxi ride costs £6.50 in London and $10.00 in Los Angeles. If the exchange rate is £1 = $1.70 purchasing power parity holds

a. True
b. False
Indicate whether the statement is true or false


False

Economics

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In response to a negative income tax, the substitution of leisure for income could be great enough to reduce total income

a. True b. False

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During World War II, prisoners of war used ________ as money

A) bullets B) cowrie shells C) chocolate D) cigarettes

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Suppose the domestic price (no-international-trade price) of copper is $1.20 a pound in the United States while the world price is $1.00 a pound. Assuming no transportation costs, the United States will:

A. have a domestic surplus of copper. B. export copper. C. import copper. D. neither export nor import copper.

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The marginal cost of additional health care when there are copayments is zero

a. True b. False

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