If a basket of goods costs 10 dollars in the United States and 11 euros in Belgium, then purchasing power parity will exist if the exchange rate between the euro and the dollar is:
A. 11 euros per dollar.
B. 1.1 dollars per euro.
C. 10 dollars per euro.
D. 1.1 euros per dollar.
Answer: D
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According to the quantity theory of money, an increase in the stock of precious metals or bills of exchange usually results in increased trade and rising prices. Both economic events helped merchant capitalists and the king
Indicate whether the statement is true or false
The range to the left of the midpoint on a linear demand curve is
A) elastic. B) infinite. C) one. D) inelastic.
Which antitrust act prohibits price fixing and other conspiracies and combinations that restrain trade and attempts to monopolize?
a. Sherman Antitrust Act of 1890. b. Clayton Act of 1914. c. Federal Trade Commission Act of 1914. d. Robinson-Patman Act of 1936. e. Cell-Kefauver Act of 1950.
Which of the following points out that even if most workers were hypothetically willing to see a decline in their own wages in bad economic times as long as everyone else also experiences such a decline, there is no obvious way for a decentralized economy to implement such a plan?
a. efficiency wage theory b. relative wage coordination argument c. adverse selection of wage cuts d. insider-outsider model