A widget costs $1000 in the US and CAD$1200 in Canada. The current exchange rate is 1USD=1.09CAD. At this rate,
a. The good costs more in the US
b. The good costs more in Canada
c. The good costs the same across the two countries
d. None of the above
b
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In an economy with production function Y = 1.5 × , K = 343, and L = 512. If factor markets are in equilibrium, then the rental price of capital is (approximately) ________, and the real wage is (approximately) ________
A) 0.5; 0.8 B) 7; 8 C) 0.9; 1.35 D) 1.4; 0.4 E) 0.6; 0.9
Economists Novy-Marx and Rauh contend that cities are
A. accurately stating the value of their assets but understating the value of their pension liabilities. B. accurately stating the value of their assets but overstating the value of their pension liabilities. C. accurately stating their pension liabilities. D. understating the value of both their assets and liabilities.
As it relates to R&D, the imitation problem is that:
A. patents, copyrights, and trademarks hinder imitation and thus limit economically desirable diffusion. B. brand names create entry barriers for would-be competitors. C. diffusion of innovation occurs more slowly than is desirable from society's perspective. D. a firm's rivals may be able to copy its new product or process innovation, reducing the original firm's return on R&D.
An example of a question that might be explored in microeconomics is to determine
A) the number of workers employed by Intel. B) savings by the household sector. C) why the U.S. economy has grown more rapidly than the Japanese economy. D) the total employment within the U.S. economy.