Under a fixed exchange rate system, if the dollar price of Mexican pesos is above its equilibrium level, the peso is referred to as overvalued and the dollar is necessarily undervalued
Indicate whether the statement is true or false
True
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An increase in the demand for peanut butter could be caused by a(n)
a. decrease in consumer income b. increase in the supply of peanut butter c. decrease in the price of bread d. drought in Georgia that destroyed 30 percent of the peanut crop e. decrease in the price of bologna
Assuming the inner curve is the United States' current production possibilities frontier, points J, N and K represent
A. an inefficient use of resources.
B. an output that is not possible to produce.
C. points of unemployed resources.
D. points of fully employed resources.
The data lag is the time between
A) the implementation of a policy and when the impact of the policy is felt. B) the enactment of a policy and the implementation of the policy. C) realizing a policy is needed and enacting the policy. D) the occurrence of an event and policymakers realizing the event has occurred.
You are about to open a business and must obtain a license from the city for $25,000. The license is transferable, but only $4,000 is refundable in the event the firm does not use the license.
a. What are your fixed costs? What are your sunk costs? b. Suppose the manager obtains a license but then decides against opening the business. If another firm offers the manager $3,000 for the license, should the manager accept the offer?