The exchange rate between the dollar and the Swiss franc is $1 = 4 francs and the price of an imported Swiss box of chocolates is $5. If the exchange rate changes to $1 = 2 francs, the dollar price of the Swiss chocolates
A. rises to $20.
B. falls to $2.50.
C. rises to $10.
D. does not change.
C. rises to $10.
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A) private saving and public consumption. B) private and public investment. C) private consumption. D) private and public saving. E) government expenditure.
If your demand for a good is ________, then a 1 percent fall in its price will lead you to ________ your expenditures on the good
A) inelastic; increase B) inelastic; decrease C) elastic; increase D) elastic; decrease
Economic profit is:
A. implicit and explicit revenues minus implicit costs. B. total revenue minus explicit measurable costs. C. implicit and explicit revenues minus implicit and explicit costs. D. explicit revenues minus explicit costs.
If your nominal income rises faster than the price level,
A. Your real income has risen. B. You can buy fewer goods and services. C. There must be deflation. D. Your real income has fallen.