According to purchasing-power parity, if a basket of goods costs $100 in the U.S. and the same basket costs 800 pesos in Argentina, then what is the nominal exchange rate?
a. 8 pesos per dollar
b. 1 peso per dollar
c. 1/8 peso per dollar
d. none of the above is correct
a
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Antitrust risks from vertical integration are usually ______than those from horizontal integration
a. Higher b. Lower c. About the same as d. None of the above
Which of the following statements is true?
a. Goods are scarcer than services in an economy. b. Goods are scarce for neither the poor nor the rich. c. Goods are scarce for both the poor and the rich. d. Goods are scarce for the poor but not for the rich. e. Goods are scarce for the rich but not for the poor.
Dr. Franke, a perpetual critic of economics, notes that a recent consultant to his medical practice had advised him to raise the prices he charged in order to raise his business revenues. At a university fundraising event he commented to the Chancellor regarding "how ludicrous" some of his faculty members were in giving advice that would drive customers away. He advised the Chancellor that more
"practical, experienced faculty" such as hired by the local Technical College were needed. If demand for Dr. Franke's services is inelastic a. customers would increase and revenues drop b. customers would increase and revenues expand c. customers would decrease and revenues drop d. customers would decrease and revenues expand e. only cross-price elasticity is related to revenues
Profit is maximized at the output at which marginal revenue equals marginal cost
a. True b. False Indicate whether the statement is true or false