The term "market" in economics refers to
A) a group of buyers and sellers of a product and the arrangement by which they come together to trade.
B) a legal institution where exchange can take place.
C) an organization which sells goods and services.
D) a place where money changes hands.
A
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Suppose that the nominal exchange rate between the U.S. dollar and the Mexican peso is 0.10 dollars per peso. If Mexico's inflation is 10 percent and the United States' inflation is 0 percent, from the U.S. point of view, the real exchange rate
A) appreciates to 0.11 dollars per peso. B) depreciates to 0.11 dollars per peso. C) appreciates to 0.09 dollars per peso. D) depreciates to 0.09 dollars per peso. E) appreciates to 0.2 dollars per peso.
Teaser interest rates refer to
A) the initial rates that are typically below market rate and are offered by lenders to entice the clients to borrow. B) mortgage rates. C) rates charged on all subprime mortgages. D) none of the above.
According to the above table, if these two countries trade
A) Mexico should import computers and the United States import bicycles. B) the United States should import computers and Mexico should import bicycles. C) the United States should export bicycles and Mexico should export computers. D) we cannot tell which country should export which good without knowing the amount of labor utilized in each country.
"Underground" economic activity can best be described as
a. the construction of subway transportation. b. the building of foundation structures for skyscrapers. c. the mining and oil industries. d. barter or cash activity that is not reported as income.