If the exchange rate between the U.S. dollar and the euro was 1.20 ($1.20 = one euro), what would be the price in dollars of a bottle of French wine selling for 40 euro?
a. $33.33
b. $40
c. $48
d. $120
C
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Trade between two nations:
A) results in the maximization of total production. B) reduces global production. C) leads to a maximization of production in one nation and minimization of production in the other. D) is inefficient compared to when both do not indulge in international trade.
Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one ticket rises from $10 to $19
A) only three tickets will be sold. B) consumer surplus decreases from $31 to $6. C) no one will buy a ticket. D) consumer surplus increases from $44 to $71.
The term tax incidence refers to how the burden of a tax is distributed among the various people who make up the economy
a. True b. False Indicate whether the statement is true or false
When a resource is being depleted and becomes scarce, the market’s way of encouraging conservation is for the price of the resource to rise, without any government intervention.
Answer the following statement true (T) or false (F)