If you were told that the exchange rate between the U.S. dollar and the Canadian dollar was 1.2, that would mean that Canadians would have to spend ____ to buy a $12 watch in New York City.
A. 18 Canadian dollars
B. 10 U.S. dollars
C. 12 U.S. dollars
D. 14.4 U.S. dollars
Answer: C
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Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is greater than 1
This slope means that A) a change in x is associated with a bigger change in y. B) a change in x is associated with a smaller change in y. C) a change in x is associated with no change in y. D) a change in x is associated with an equal change in y.
If parking spaces on a college campus are scarce, with quantity demanded during the “peak” hours, from 8 a.m. to 11 a.m., far greater than the number of spaces, an economist would propose as an efficient solution,
A. lowering the parking fees during those hours to compensate students for the longer search time. B. charging the same parking fees during all hours of the school day. C. raising parking fees during the peak hours to encourage some students to schedule classes during other hours when parking fees are lower. D. hiring more security guards to patrol for illegal parkers.
Which term refers to a rule that every imported product must be opened by hand and inspected with a magnifying glass, by one of just three government inspectors available at any given time?
a. a non-tariff barrier b. a quota c. a government bureaucracy d. an import quota
Explain why it is so important for a business to understand the concept of price elasticity and be able to measure this for its products.
What will be an ideal response?