Suppose that an American-made pair of blue jeans has a price of $80. If the exchange rate is $0.095 = 1 peso, then a Mexican consumer would have to pay approximately __________ pesos to purchase the blue jeans, but if the exchange rate is $0.085 = 1 peso, then a Mexican consumer would have to pay _________ pesos to purchase the blue jeans
A) 7.6; more
B) 842; more
C) 7.6; fewer
D) 842; fewer
E) 8,444; fewer
B
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A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course. The professor has
A) decreased the marginal benefit of cheating. B) recognized that students don't make rational choices. C) increased the marginal cost of cheating. D) made all the students act in the social interest. E) recognized that students don't respond to incentives.
An increase in wealth would cause the IS curve to
A) shift up and to the right. B) shift down and to the left. C) remain unchanged. D) shift up and to the right only if people face borrowing constraints.
David Elkind, author and child expert, says that:
a. Children do not have enough to do b. Children have too much free time c. Children are overcommitted and growing up too fast and too soon d. Children spend too much time in unorganized activities
In economic terms, the total price of a pound of meat for an individual who has waited in line is
A) the money price paid to the butcher for the pound of meat. B) the money price of meat relative to the price of bread or other necessity. C) the money price of the meat plus the opportunity cost of time spent waiting in line. D) the money price of an equal amount of meat substitute, such as beans and rice.