According to purchasing-power parity theory, the nominal exchange rate between the U.S. and another country should equal the U.S. price level divided by the price level in the foreign country
a. True
b. False
Indicate whether the statement is true or false
False
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The part of consumption that does not depend upon the level of disposable income is
A) autonomous consumption. B) savings. C) average propensity to consume. D) saving.
In the figure above, Jill is producing at point A. Jill's opportunity cost producing one pair of pants is
A) 2 shirts per pair of pants. B) 3 shirts per pair of pants. C) 3/5 of a shirt per pair of pants. D) 5/3 of a shirt per pair of pants.
There are two industries that emit sulfur dioxide. The government decides to use a cap-and-trade policy by issuing permits for pollution. If Harry's industry has a higher marginal cost of reducing sulfur dioxide than does Joe's industry, ________
A) the cap-and-trade policy will not make the amount of pollution efficient B) Joe's industry will sell permits to Harry's industry C) Harry's industry will sell permits to Joe's industry D) Harry's industry and Joe's industry will emit the same quantity of sulfur dioxide
Which of the following is not an example of a capital input? a. A person's skills and abilities, which can be employed to produce valuable goods and services. b. Factories and offices where goods and services are produced
c. Tools and equipment. d. Computers used by a company to record inventory, sales, and payroll.