Which of the following is a FALSE statement concerning purchasing power parity?
A) Purchasing power parity states that dollars will tend to exchange for pounds at a rate that maintains a constant purchasing power of a given quantity of a currency.
B) It is rare to see deviations from the purchasing power parity value of currencies.
C) Over the long run, purchasing power parity exerts influence over exchange rates.
D) An overvalued dollar buys more in Britain than it does in the United States.
B
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Assume Joe is only willing to pay $5 for a Ferrari sports car
A) Joe is not considered part of the demand for Ferraris. B) Joe won't be sold a Ferrari. C) Joe is not considered rational. D) Joe's willingness to pay is not indicative of how much he values the Ferrari.
Franco's Frozen Ice produces Italian flavored ice that is sold in the freezer section of grocery stores. Currently, Franco's does not have a fixed advertising budget and advertises in grocery stores' weekly advertising flyers and on the radio. A unit of advertising in the weekly flyers costs $1,500 and a unit of advertising on the radio costs $5,500. At their current advertising levels, the
marginal benefit of advertising in the flyer is $1,750 and the marginal benefit of advertising on the radio is $5,000. Which of the following is true? A) To maximize profits, Franco's should increase the amount of advertising in flyers and decrease the amount of radio advertising. B) To maximize profits, Franco's should decrease the amount of advertising in flyers and increase the amount of radio advertising. C) To maximize profits Franco's should increase both the amount of advertising in flyers and the amount of radio advertising. D) Franco's is currently maximizing its profits from advertising.
The decline of the full-service wholesale houses CANNOT be traced to
a. competition from the marketing departments of large manufacturers. b. many industries adopting the "continuous process" manufacturing. c. the rise of brand identity. d. All of the above are correct. e. Only a and c are correct.
Which of the following statements about stock market brokers and dealers is TRUE?
A) Brokers earn commissions from trading stocks but dealers try to profit from trading stocks. B) Brokers try to profit from trading stocks but dealers earn commissions from trading stocks. C) Both brokers and dealers earn commissions from trading stocks. D) Both brokers and dealers try to profit from trading stocks.