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
Economics
During World War II, prisoners of war used ________ as money
A) bullets B) cowrie shells C) chocolate D) cigarettes
Economics
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.
Economics
The marginal cost of additional health care when there are copayments is zero
a. True b. False
Economics