You go on vacation to Mexico and take $1,000 with you. During your time in Mexico, the peso appreciates in value relative to the dollar. It follows that
A) you will be able to buy more goods and services in Mexico after the peso appreciates.
B) you will be able to buy fewer goods and services in Mexico after the peso appreciates.
C) the purchasing power parity theory is incorrect.
D) Mexican workers, paid in pesos, will be able to buy fewer goods and services in Mexico after the peso appreciates.
B
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a. directly b. inversely c. exactly d. sometimes e. never
Who reports the official U.S. unemployment rate?
a. the U.S. Treasury Department b. the U.S. Federal Reservethe c. U.S. Bureau of Labor Statistics d. unemployment collection offices
The principle that individuals and firms pick the activity level where the incremental benefit of that activity equals the incremental cost of that activity is known as the:
A. marginal principle. B. principle of opportunity cost. C. principle of diminishing returns. D. spillover principle.
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