A dining table costs $3,000 in New York and same table costs 5000 euros in Rome. If absolute PPP holds, $1 is equal to
A) 1 euro
B) 2 euros
C) 5/3= 1.67 euros
D) 3/5= 0.6 euros
Ans: C) 5/3= 1.67 euros
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A cruiser bike is being auctioned in a first-price sealed-bid auction. You always wanted to own a cruiser bike, and therefore decide to participate in the auction. You value the bike at $4,000
On the day of the auction, you see that there are 70 other bidders. Your optimal bid in this case is ________. A) $3,500 B) $3,000 C) $4,000 D) $3,944
Why does the segmented markets theory suggest think that bonds of different maturities are not perfect substitutes for each other?
What will be an ideal response?
Mario's Pizza and Bella's Pizza are in tacit collusion to cooperate and each charge a high price for their pizzas. If Mario's Pizza initially cooperates with Bella's Pizza, but then switches and charges a low price and Bella's Pizza responds by forever charging a low price, this is an example of ________.
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Suppose that the alternative uses of an hour of your time in the evening, ranked from best to worst, are (1) study economics, (2i) watch two half-hour TV sitcoms, (3) play pool, and (4) jog around town. You can only choose one activity. What is the opportunity cost of studying economics for one hour, given this information? a. Jogging around town
b. Watching two half-hour TV sitcoms. c. Playing pool. d. The sum of watching two half-hour TV sitcoms, playing pool, and doing your laundry.