Suppose purchasing power parity holds. If in 1997 the price level in the United States is 100, the price level in Japan is 10,000, and the nominal exchange rate is 100 yen per dollar, while in 1998 the price level in Japan rises to 10,500 and the nominal exchange rate rises to 105, then the price level in the United States in 1998 must be
A. 105.
B. 110.25.
C. 95.
D. 100.
Answer: D
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The problem of scarcity
A. applies to market-based economies. B. applies to centrally planned economies. C. applies only to the economies of less-developed countries. D. applies to all of these economies, not just one type.
Each of the following would be considered a common resource except a
a. water reservoir. b. streetlight. c. a congested road. d. book from a public library.
Zoey wants to have about $750,000 when she retires in 10 years. She has $300,000 to deposit now. At which of the following interest rates would Zoey's deposit come closest to $750,000 after 10 years?
a. 9.6 percent b. 9.9 percent c. 10.2 percent d. 10.5 percent
The “law” of diminishing returns rests on the “law” of variable input proportions.
Answer the following statement true (T) or false (F)