The real exchange rate is defined to be the:
A. value of goods in one nation relative to the value the same set of goods in another country.
B. rate at which firms in different nations would be willing to exchange goods.
C. rate people exchange goods and services in a domestic market.
D. value of goods in one nation relative to the value a similar set of goods in another country.
Answer: A
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The level of income below which the federal government classifies a family as poor is called the:
A. median income threshold. B. poverty threshold. C. absolute measure of poverty. D. relative measure of poverty.
Carol is a coal miner who just got laid off when the last coal mine in the area was shut down. She has looked everywhere for another job as a miner, but cannot find one. Given that Carol is unlikely to find another job as a miner, she would be considered:
A. frictionally unemployed. B. structurally unemployed. C. real-wage unemployed. D. Carol is a discouraged worker.
As a group, oligopolists would always earn the highest profit if they would
a. produce the competitive quantity of output. b. produce more than the competitive quantity of output. c. charge the same price that a monopolist would charge if the market were a monopoly. d. operate according to their own individual self-interests.
In monopolistically competitive markets, economic losses
a. suggest that some existing firms will exit the market. b. suggest that new firms will enter the market. c. are minimized through government-imposed barriers to entry. d. are never possible.