If the dollar depreciates relative to the Mexican peso,
A) U.S. exports to Mexico become more expensive.
B) U.S. exports to Mexico become less expensive.
C) Mexican imports to the United States become less expensive.
D) The value of Mexican imports to the United States does not change, but the value of U.S. exports to Mexico increases.
B
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Suppose the price of good x in country A is lower than the price of good x in country B when no trade is permitted. In the absence of transportation costs, if the supply curve for good x in the two countries is sufficiently elastic, free trade in good x implies that country B will stop producing x.
Answer the following statement true (T) or false (F)
Other things being equal, the longer a price change persists
A) the less is the elasticity of demand. B) the less chance a consumer will be able to adjust. C) the more the consumer will be willing to pay. D) the greater is the elasticity of demand.
Which scenario has a higher present discounted value (assume interest is compounded annually); $100 received in 3 years if the interest rate is 8% or $90 received in 2 years if the interest rate is 7.25%?
A. $100 owed in 3 years B. $90 owed in 2 years C. Both scenarios have the same present discounted value. D. It cannot be determined with information provided.
The period of time over which all inputs are variable is the
A) market horizon. B) short run. C) calendar year. D) long run.