Suppose the Euros per Canadian dollar exchange rate is 4 . The aggregate price level in France is 100, and the aggregate price level in Canada is 80 . The real exchange rate between the two countries is _____
a. 2.5
b. 3.2
c. 5
d. 2.4
b
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Arbitrage refers to the act of
A) buying a product in one market at a low price and reselling in another market at a higher price. B) suing a producer for illegal business practices. C) trading in the foreign exchange market. D) resolving a dispute in front of an arbitrator instead of a court of law.
Accumulating a greater number of inputs will ensure that an economy will experience economic growth
Indicate whether the statement is true or false
According to the figure shown, if Starbucks expands in the market, then Dunkin Donuts should:
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.
A. also expand their business.
B. not expand.
C. give an ultimatum.
D. None of these statements is true.
Define the following terms and explain their importance to the study of economics
a. monopolistic competition b. oligopoly c. cartel d. oligopolistic interdependence