If over the next six months inflation is higher in the U.S. than in foreign countries, then according to purchasing-power parity
a. only the nominal exchange rate depreciates.
b. both the real and nominal exchange rate appreciate.
c. both the real and nominal exchange rate depreciate.
d. only the real exchange rate appreciates.
a
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Answer the next question on the basis of the following data. OutputTotal Cost0$24133241348454561669The average total cost of producing 3 units of output is
A. $14.00. B. $16.00. C. $12.00. D. $13.50.
Exports are:
A) positively related to the level of foreign income and negatively related to the exchange rate. B) positively related to the level of foreign income and positively related to the exchange rate. C) negatively related to the level of foreign income and negatively related to the exchange rate. D) negatively related to the level of foreign income and positively related to the exchange rate.
Which of the following is the best definition of economics?
a. An investigation of the quantities and prices of the various goods produced by the nations of the world. b. A study of why inflation and unemployment periodically plague the U.S. economy. c. An analysis of how individuals and societies deal with the problem of scarcity. d. An examination of the role that money plays in the economy. e. A study of how goods and services are distributed throughout the world.
Economic profit is equal to total revenue minus the
a. explicit cost of producing goods and services. b. opportunity cost of producing goods and services. c. accounting cost of producing goods and services. d. implicit cost of producing goods and services.