Suppose a U.S.-made machine costs $500 and the exchange rate is 100 yen = $1 . A Japanese citizen purchasing this machine would pay:
a. 100 yen.
b. 500 yen.
c. 5,000 yen.
d. 10,000 yen.
e. 50,000 yen.
e
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Refer to the scenario above. If this game is repeated several times, the players will eventually reach an equilibrium where Beth will earn ________ and Charles will earn ________
A) $0; $10 B) $10; $10 C) $0; $50 D) $20; $20
In the classical theory of employment a decline in the rate of interest will _____ saving and _____ investment.
Fill in the blank(s) with the appropriate word(s).
The difference between GNP and NNP is accounted for by:
(a) Depreciation; (b) Net factor income from abroad; (c) Indirect Taxes/subsidies; (d) Transfer Payments.
If Japan has an absolute advantage over the United States in making TVs, then Japan:
A. probably sells TVs to the United States. B. it will have no reason to trade with the US. C. produces more TVs than the United States using the same resources. D. has the ability to produce TVs at a lower opportunity cost than the United States.