If there are equal rates of return between assets in two currencies, then there is
A) purchasing power parity.
B) interest rate parity.
C) parity of exchange.
D) foreign exchange parity.
B
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The loss of efficiency that occurs in monopolistic competition has to be weighed against the gain of
A) higher wages for employees. B) an increase in employment. C) greater product variety. D) reduced environmental damage.
Describe the alternative methods of allocating scarce resources
What will be an ideal response?
An economy that contains both perfect and imperfect competition and both regulated and non regulated industries is known as a
a. traditional economy. b. mixed economy. c. market economy. d. conglomerate economy.
If a 1 percent change in income generates a greater than 1 percent change in quantity demanded for boat rentals, then the demand for boat rentals
a. is a good illustration of Engel's law b. reflects the demand for an inferior good c. has a price elasticity greater than one d. is income elastic e. is income inelastic