Yesterday, one could get £2 for $1. Today, however, one can only get £1.5 for $1. Which of the following best describes this scenario?

a) The pound depreciated against the dollar.
b) The pound appreciated against the dollar.
c) The dollar appreciated against the pound.
d) The purchasing power parity increased between the two currencies.


Ans: b) The pound appreciated against the dollar.

Economics

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A) trends in two variables; unrelated variables B) relationship between two variables; a trend in a variable C) cross-section relationship; a general tendency for the variables to rise or fall D) trend in a variable; a general tendency for the variable to rise or fall E) relationship between two variables; a cross-section relationship

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As more time passes, the price elasticity of gasoline

A) increases. B) decreases. C) stays the same. D) becomes perfectly inelastic. E) becomes perfectly elastic.

Economics

Why is gold very expensive, even though it is not essential to life, while water, which is essential to life, is inexpensive?

What will be an ideal response?

Economics

Explain why selling output at a price below that at which marginal revenue equals marginal cost (MR = MC) might serve to deter entry of a potential competitor

What will be an ideal response?

Economics