If purchasing power parity holds, then if the price of a basket of goods in the U.S. rose from $1,500 to $2,000 and the price of the same basket in Mexico rose from 12,000 pesos to 18,000 pesos
a. inflation was higher in the U.S. than Mexico so the U.S. dollar would appreciate.
b. inflation was higher in the U.S. than Mexico so the U.S.dollar would depreciate.
c. inflation was lower in the U.S. than Mexico so the U.S. dollar would appreciate.
d. inflation was lower in the U.S. than Mexico so the U.S dollar would depreciate.
c
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One of the elements of monopolization is
A) having a superior product or having a superior business acumen.. B) the possession of monopoly power in the relevant market. C) when only one firm exists in an industry. D) having a significant pricing power due to an accident in the relevant market.
Which of the following industries most closely approximates the conditions of the oligopoly model?
a. legal services b. retail clothing c. milk d. breakfast cereals
The difference between the price the seller receives for a good or service and the minimum price he would be willing to accept for that unit is called: a. the total gains from trading that unit. b. the gain in producer surplus
c. the gain in consumer surplus. d. the total surplus.
Patents stimulate innovation by
a. providing incentives to incur research and development costs b. guaranteed profits for those who innovate c. prosecuting anyone who purchases the good protected by the patent d. providing tax breaks to investors e. increasing the interest rate on borrowed funds