You're traveling in Ireland and are thinking about buying a new digital camera. You've decided you'd be willing to pay $125 for a new camera, but cameras in Ireland are all priced in euros. If the camera you're looking at costs 115 euros, under which of
the following exchange rates would you be willing to purchase the camera? (Assume no taxes or duties are associated with the purchase.)
A) 0.56 euros per dollar
B) 0.89 euros per dollar
C) 0.92 euros per dollar
D) You would purchase the new camera at any of the above exchange rates.
Answer: C
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Real GDP can increase if the
i. quantities of goods and services produced decrease and prices fall by a smaller percentage. ii. quantities of goods and services produced decrease and prices fall by a larger percentage. iii. quantities of goods and services produced decrease and prices do not change. iv. quantities of goods and services produced increase. A) i and iii B) iii only C) i only D) iv only E) i, ii, and iii
Who was the author of the following prediction: in the absence of a system for enforcing order in society, life will be "solitary, poor, nasty, brutish, and short"?
A) Thomas Hobbes B) John Maynard Keynes C) Thomas Kuhn D) Jean-Jacques Rousseau E) Adam Smith
In the long run, monopolistically competitive firms produce where
A) excess capacity exists. B) the markup is equal to zero. C) the demand curve has shifted so that it intersects the minimum average total cost point. D) average total cost is minimized.
Suppose the U.S. dollar price of the Euro falls. This means that
A) the U.S. exchange rate has risen and the U.S. dollar buys more euros. B) the U.S. exchange rate has risen and the U.S. dollar buys less euros C) the U.S. exchange rate has fallen and the U.S. dollar buys more euros. D) the U.S. exchange rate has fallen and the U.S. dollar buys less euros.