If we know that the exchange rate is $1.60 per pound then the exchange rate of pounds per dollar is
a. greater than 1.60
b. 0.80
c. 1.00
d. 0.625
e. 1.60
D
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According to your text, the "market economy" can best be understood as
A) an institution created by British merchants around the time of Smith's Wealth of Nations. B) an extremely complex institution that emerged out of individuals specializing and trading among each other. C) an institution unique to America. D) an institution that could not exist in the absence of regulation.
To have an effect on the market price, price ceilings must be set above the equilibrium price. ?
Answer the following statement true (T) or false (F)
Always There Wireless is wireless monopolist in a rural area. There are 200 customers, each of whom has a monthly demand curve for wireless minutes of Qd = 200 - 100P, where P is the per-minute price in dollars and Q is the number of wireless minutes. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute and the largest fixed fee that it can, what is Always There's profit per customer?
A. $153.13 B. $196.88 C. $200 D. $175
Distorting taxes can invalidate Ricardian equivalence because
A) they confuse consumers about the need for government to repay its debt. B) alternative ways of collecting the same tax revenue produce different amounts of lost welfare. C) they are inferior to lump-sum taxes. D) they are more popular, politically, than lump-sum taxes.