If purchases power parity exists and the exchange rate is 1.50 u.s. dollars per British pound, then a latte that has a price of $4.00 in Northridge, California, has a price of _ in London, England?
a. 8.00 pounds
b. 4.00 pounds
c. 6.00 pounds
d. 2.67 pounds
e. .38 pounds
d. 2.67 pounds
(4 / 1.50 = 2.67)
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An advantage of settling disputes via arbitration rather than court cases is that:
a. the risk of an incorrect decision in the former case is negligible. b. the former is inexpensive and binding. c. the former is more likely to grant a lenient decision. d. the former may be more knowledgeable than an uninformed jury.
John Maynard Keynes drew many economists ______________ the classical view. The classical view held that a market economy __________ regulate itself to avoid long periods of excessive unemployment
A) toward; can B) toward; cannot C) away from; can D) away from; cannot
When OPEC meets to set production levels, this organization is playing a
A. reaction function game. B. cooperative game. C. negative sum game. D. non-cooperative game.
Refer to Table 10.1. Equilibrium real GDP for this economy is equal to
A) $5.75 billion. B) $12 billion. C) $23 billion. D) $46 billion.