Suppose the price of an ounce of silver is 100 nuevos soles in Peru and $400 in the United States. This implies:
a. the Peruvian nuevo sol is worth four times the value of a U.S. dollar.
b. the Peruvian nuevo sol is worth one-fourth the value of a U.S. dollar.
c. Peru's economy must be four times larger than the U.S. economy.
d. the U.S. economy must be four times larger than that of Peru.
e. the U.S. dollar is worth four times the value of a Peruvian nuevo sol.
a
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If the price level doubles, it will
A) increase potential GDP. B) increase the quantity of money. C) decrease the buying power of money. D) decrease potential GDP. E) have no effect on the buying power of money.
If both the marginal cost and the average variable cost curves are U-shaped, which of the following is true over the range of output for which the average variable cost curve has a negative slope? a. The marginal cost curve must have a negative slope
b. The average total cost curve must have a negative slope. c. The marginal cost curve is below the average variable cost curve. d. both (b) and (c) are correct.
Suppose that the consumption function crosses the 45-degree line at a disposable income level of $800 . Assume further that saving equals $200 when disposable income is $1,300 . This implies that the MPC must equal 0.6
a. True b. False Indicate whether the statement is true or false
A barrier to entry that grants exclusive use of an invented product or process to the inventor is called
A. a patent. B. economies of scale. C. the ownership of a scarce resource. D. a government franchise.