Under these conditions, the ratio of the international price of services relative to the price of goods should fall into what range?
a) less than 9/8
b) 9/8 to 2.4
c) 4/3 to 1.6
d) 1.5 to 1.8
e) more than 2.4
d) 1.5 to 1.8
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Based on the production and revenue data in the above table, if the wage rate is $35 per worker, how many workers will be hired?
A) 5 B) 4 C) 3 D) 2
What two things must governments be able to do to regulate pollution and create a market for pollution?
a. easily identify polluters and monitor their behavior b. easily identify polluters and what pollution they are putting into the air and water c. easily identify polluters and know their cost structure to charge them accordingly d. none of the above
In October 2008, Congress passed the Troubled Asset Relief Program (TARP), under which the Treasury provided ________ to banks in exchange for ________
A) bonds; cash B) lines of credit; loan guarantees C) funds; stock D) financial advice; promises to expand mortgage lending
In order to assess the relationship between the real exchange rate and total exports for any nation, one must construct a real effective exchange rate that measures:
a. a composite of each trading partner's real exchange rate change weighted by the share of trade. b. the exchange rate that would exist with no inflation and balanced trade. c. the average of all nominal exchange rates since we assume no inflation. d. nominal trade adjusted for inflation.