Suppose the exchange rate is such that 1 U.S. dollar equals 1 euro in New York and 0.9 euros in Paris. An arbitrageur would sell euros
a. in New York and buy U.S. dollars in Paris
b. in Paris and buy U.S. dollars in New York
c. in New York while buying them in Paris
d. in Paris while buying them in New York
e. at the same price in both cities
D
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When the government grants an inventor a patent
A) he has the exclusive right to make, sell or use his invention for 5 years. B) the protection of a current invention would increase spending on R&D. C) the patent holder has less incentive to invest in R&D because one successful invention removes the need to develop others. D) the patent holder is guaranteed a profit on his invention.
The only two options to control the growth of healthcare spending are
a. price controls and political rationing or competition and market prices. b. taxation or political mandates. c. subsidizing of healthcare insurance or government provision of healthcare. d. free healthcare or subsidized healthcare.
Externalities can be positive, as well as negative.
A. True B. False C. Uncertain
If hot dogs are an inferior good, an increase in income will result in
A, an increase in the quantity demanded for hot dogs B. an increase in the demand for hot dogs C. a decrease in the quantity demanded for hot dogs D. a decrease in the demand for hot dogs E. no change in the quantity demanded for hot dogs