If purchasing power parity holds, the exchange rate (e) can be expressed as a function of the domestic price (P) and the foreign price (P*) as
A) e = P - P*.
B) e = P* - P.
C) e = P* + P.
D) e = P/P*.
D
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A solution to the budget-gaming problem is
a. Remove all kinks from the compensation schedule b. Use a straight line pay for performance function c. Do not base compensation on meeting a particular budget goal d. All of the above
A rise in the CPI from 120 to 180 represents a _____ percent increase in the price level.
Fill in the blank(s) with the appropriate word(s).
If an economy is being "productively efficient," then that means the economy is:
A. Producing the products most wanted by society B. Fully employing all economic resources C. Maximizing the returns to factors of production D. Using the least costly production techniques
Tim has a toenail clipping business that is a sole proprietorship. If he is sued for a botched pedicure
A) he has limited liability. B) he has separation of ownership and control. C) all of his personal assets are at risk. D) he will be taxed doubly.