Which exchange rate is nearest the launch rate for the Euro against the Dollar?
(a) Parity.
(b) Euro equals $1.18.
(c) Euro equals $1.05.
(d) Euro equals $1.24.
Answer: (d) Euro equals $1.24
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Bob got laid off six months ago. He used to go to the movies once a month, but he's only been twice because he lost his job. This type of behavior can be measured using:
A. the price elasticity of demand. B. the price elasticity of supply. C. the income elasticity of demand. D. the cross-price elasticity.
Using the rule that focuses on the marginal approach to maximizing profits, a monopolist charges a price where the:
a. output sold is maximized. b. ATC curve is minimized. c. MR = MC. d. MR = 0.
A picture-frame company operates in a monopolistically competitive market. Its short- run equilibrium price is $80 and its ATC is $65 . It sells 100 picture frames a week. Ignoring for now its long-run position, in the short run,
a. the firm makes zero economic profit, zero accounting profit, but $1,500 normal profit b. other picture-frame companies will leave the market because it knows new firms will enter to drive price and economic profit down c. the firm makes an $80,000 accounting profit d. the firm makes an economic profit of $1,500 e. the market demand curve will shift to the left as more firms enter the market
The benefits from free trade are not evenly distributed throughout an economy t/f
a. true b. false