If the price of a Toyota Camry is Y2,000,000 and the price of a Ford Fusion is $20,000, according to the law of one price, the exchange rate between the yen and the dollar should be:
A) Y100 = $1
B) $100 = Y1
C) Y1,980,000=$1
D) the law of one price does not apply since the goods are differentiated
A
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The quantity theory of money and prices assumes
A) the price level is increasing at a constant rate. B) the price level is constant. C) real output is constant. D) velocity is constant.
The difference between the value of the goods a country exports and the value of the goods a country imports is the country's
A) balance of trade. B) capital account balance. C) current account balance. D) financial account balance.
The figure below shows the retail demand for running shoes. If the distributor (the retailer) is a monopoly and the marginal cost of distributing the shoes is $20 per pair, the manufacturer's wholesale demand curve lies
A) $20 below the retail demand curve, D.
B) $20 below the retail marginal revenue curve, MR.
C) $20 above the retail demand curve, D.
D) $20 above the retail marginal revenue curve, MR.
In the economy of Talikastan in 2015, exports were $200, GDP was $2000, government purchases were $200, imports were $270, and investment was $500 . What was Talikastan's consumption in 2015?
a. $830 b. $1230 c. $1370 d. $1770