Micromania has recently experienced a slowdown in its labor productivity growth relative to its international trading partners. Micromania can expect, if this trend continues, the currency of its trading partners to be devalued
Indicate whether the statement is true or false
F
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If the U.S. dollar appreciates from 1.25 Swiss franc per U.S. dollar to 1.5 francs per dollar, then the franc depreciates from ________ U.S. dollars per franc to ________ U.S. dollars per franc
A) 0.80; 0.67 B) 0.67; 0.80 C) 0.50; 0.33 D) 0.33; 0.50
At Olive’s Oranges customers may pick oranges from a 100-tree orchard at the price of 15¢ per orange. Olive’s orchard currently produces 8,000 oranges annually. Olive estimates that installing a new irrigation system would increase her annual yield by 200 oranges, beginning next year. The irrigation system requires an immediate cost of $600.
(i) Calculate the marginal product of capital for the irrigation system. Express your answer as a percentage of the cost of the capital. (ii) Suppose the interest rate is 4%. Should Olive invest in the irrigation system? Why or why not? (iii) Repeat part ii for an interest rate of 8%.
Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once
a. True b. False Indicate whether the statement is true or false
Suppose the money supply increases by 10 percent but velocity is not constant. Given this information, it follows that:
A. nominal GDP will increase by 10 percent. B. nominal GDP will increase by more than 10 percent. C. nominal GDP will increase by less than 10 percent. D. the change in nominal GDP cannot be determined.