Which of the following is false?
A) Under free banking, banks would not be subject to any special regulations beyond those which are required of other businesses.
B) Under free banking, banks would be allowed to issue their own currency.
C) The government would largely control the actions of banks under free banking.
D) The market forces would raise or lower the money supply under free banking.
C
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Explain the law of one price and the theory of purchasing power parity. Why doesn't purchasing power parity explain all exchange rate movements in the short run? What factors determine long-run exchange rates?
What will be an ideal response?
Which of the following is a determinant of productivity?
a. human capital per worker b. physical capital per worker c. natural resources per worker d. All of the above are correct.
On average in the United States, gift-giving during the Christmas holiday:
A. wastes about $20 billion. B. wastes about $100 billion. C. wastes about $40 billion. D. wastes about $50 billion.
Refer to Scenario 9.8 below to answer the question(s) that follow. SCENARIO 9.8: Investors put up $1,040,000 to construct a building and purchase all equipment for a new gourmet cupcake bakery. The investors expect to earn a minimum return of 10 per cent on their investment. The bakery is open 52 weeks per year and sells 900 cupcakes per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The bakery charges $8 on average per cupcake.Refer to Scenario 9.8. Total variable costs per week are
A. $600. B. $1,000. C. $2,600. D. $4,000.