The nominal exchange rate is about 2 Aruban florin per dollar. If a basket of goods in the United States costs $40, how many florins must a basket of goods in Aruba cost for purchasing-power parity to hold?
a. 20 florin
b. 40 florin
c. 60 florin
d. 80 florin
d
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Information asymmetry in a market can lead to ________
A) a market failure B) the paradox of thrift C) the free-rider problem D) a tragedy of the commons
Refer to Table 8-1. Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Assume all of the coffee beans are used in the production of the coffee drinks. Using the information in the above table, nominal GDP for this simple economy equals
A) 3,090 units. B) $7,250. C) $8,750. D) $9,750.
Compared to a perfectly competitive industry, a monopolist with the same marginal cost and demand curve will charge:
a. a higher price and produce a higher volume of output. b. a lower price and produce a higher volume of output. c. a lower price and produce a lower volume of output. d. a higher price and produce a lower volume of output. e. the same price and produce the same volume of output.
The civilian labor force includes only the employed
a. True b. False Indicate whether the statement is true or false