If income elasticity is positive, a product is inferior
Indicate whether the statement is true or false
False
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Refer to Table 9-11. Which country has an absolute advantage in producing clocks?
A) Denmark B) Belize C) both countries D) neither country
Equilibrium in the foreign exchange market occurs:
a. at the point where the foreign exchange demand and supply curves intersect. b. at the point where the foreign exchange demand and supply curves reach maximum separation. c. when two nations' economic leaders agree on the appropriate exchange rate. d. when two nations' diplomatic leaders agree on an exchange rate that meets both countries' needs. e. only by chance, if at all, because they change very frequently.
Suppose you have $200 with which you can buy shares of stock from two companies: ABC Hot Chocolate Company and XYZ Lemonade. Each company's stock currently sells for $100 per share. If the temperature next year is lower than average, the stock price for ABC will increase by $20, and the stock price for XYZ will not change. If the temperature next year is higher than average, the stock price for XYZ will increase by $20, and the stock price for ABC will not change. There is a 50 percent chance that it will be colder than average next year, and a 25 percent chance that it will be warmer than average. If you purchase one share of ABC stock and one share of XYZ stock, your expected gain will be ________.
A. $15 B. $0 C. $10 D. $40
The location of the supply curve of a product depends on:
A. the technology used to produce it. B. the number of sellers in the market. C. the prices of resources used in its production. D. all of these.