The nominal exchange rate is 4 Saudi Arabian riyals, 8 Moroccan dirham, 60 Indian rupees, or .8 euros per U.S. dollar. A fast food breakfast costs $5 in the U.S., 30 riyals in Saudi Arabia, 40 Moroccan dirham in Morocco, 250 Indian rupees in India, and 5 euros in France. According to these numbers, where is the real exchange rate between American and foreign goods the lowest?
a. Saudi Arabia
b. Morocco
c. India
d. Britain
a
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The tables above show the marginal costs and benefits from production and consumption of paper. From this information we can see that there are
A) external costs of producing paper. B) external benefits of producing paper. C) no externalities in production of paper. D) external costs from consuming paper.
A good example of land resources is
a. a steel billboard on an interstate highway b. water c. wood-based furniture d. machinery made from iron ore e. buildings located on prime real estate
Assume that good X and good Y each have diminishing marginal utility for a consumer. In this case,
A) an indifference curve linking the two goods will have a constant slope. B) an indifference curve will be convex to the origin. C) the demand curves for these goods will be positively sloped. D) the demand curves for these goods will be horizontal.
Which of the following relationships is correct?
A. Stock of Inventories (End of Period) = Stock of Inventories (Beginning of Period) - Production - Sales B. Stock of Inventories (End of Period) = Stock of Inventories (Beginning of Period) - Production + Sales C. Stock of Inventories (End of Period) = Stock of Inventories (Beginning of Period) + Production - Sales D. Stock of Inventories (End of Period) = Stock of Inventories (Beginning of Period) + Production + Sales