The Big Mac index is a measure of how well the purchasing power parity theory works
a. True
b. False
Indicate whether the statement is true or false
True
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All of the following are assumptions of the production possibilities curve EXCEPT
A) resources are fully employed. B) there is a fixed time period. C) there is a fixed level of technology. D) there is a fixed demand for the products.
On a production possibilities frontier, the opportunity cost of one more unit of a commodity per time period is measured by the
a. monetary price of the commodity b. amount of the other commodity that must be sacrificed c. amount of unemployed resources that must be used d. amount of satisfaction it gives consumers e. amount of tax paid to government for production, sale, and use of the commodity
If the U.S. dollar was worth 0.8 euros, and the dollar appreciated, it might now be worth:
A. 0.7 euros. B. 0.9 euros. C. 0.8 euros. D. None of these statements is possible.
For poor countries, a lack of capital and poorly developed infrastructure contribute to low farm productivity.
Answer the following statement true (T) or false (F)