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.
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A time series graph reveals whether there is a ________ , which represents ________
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
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.
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?
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?