Goods that cost 1/5 of one dollar in the U.S. cost one kroner in Denmark, the real exchange rate would be computed as how many Danish goods per U.S. goods?
a. five
b. the amount of kroner that can be bought with twenty U.S. cents
c. the amount of kroner that can be bought with 5 dollars
d. None of the above is correct.
b
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Frank owns an apple farm and plans to spend 4 hours today picking apples. The number of apples he can pick per hour depends on the total number of hours he spends working in either the east orchard or the west orchard in the manner shown in the table below.Hours inEastOrchardNumber ofApples PerHourHours inWestOrchardNumber ofApples PerHour140110232210325310420410How should Frank divide his time between the east and the west orchard?
A. He should spend all 4 hours in the east orchard. B. He should spend 2 hours in east orchard and 2 hours in the west orchard. C. He should spend 3 hours in the east orchard and 1 hour in the west orchard. D. He should spend 1 hour in the east orchard and 3 hours in the west orchard.
If a U.S. firm produces cars in Mexico, that production should count towards
A) Mexico's GNP. B) U.S. GDP. C) U.S. GNP. D) It will not affect either U.S. GNP or U.S. GDP.
Marginal analysis is useful in economics, but not in other areas of life
a. True b. False Indicate whether the statement is true or false
Which of the following is not included in the current account?
A. exports of goods B. imports of goods C. U.S. capital inflow and outflow D. unilateral transfers