If the current €/$ exchange rate is at parity, then the Euro price of a Hollister hoody costing US$125 is:
(a) €155;
(b) €165;
(c) €125;
(d) We need more information to calculate the Euro price.
Answer: (c) €125;
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
The table above gives a firm's total product schedule. Suppose labor is the only variable factor of production. The price of labor is $500 per week and total fixed costs are $600 per week. What is the marginal cost of producing the 90th unit?
A) $10.00 B) $24.92 C) $31.61 D) $50.00
The rapid growth of the Chinese economy should
A) benefit U.S. consumers as they have access to less-expensive consumer goods. B) make it more difficult for citizens of the United States to find jobs. C) not affect the mix of jobs available to citizens of the United States. D) A and B
Price-matching strategies may fail to enhance profits when:
A. firms cannot prevent customers from making deceptive claims or firms have different marginal costs. B. firms cannot prevent customers from making deceptive claims. C. firms have different marginal costs. D. None of the statements are correct.