If the price of a car in the United States is $22,000, and the exchange rate between the dollar and the Japanese yen falls from 125 yen to 105 yen per dollar, then the price of the American car in Japan will
A. remain the same.
B. rise.
C. fall.
D. be irrelevant, because the Japanese government will impose restrictions on imports from the United States.
Answer: C
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A) 10% B) 8% C) 5% D) 3%
Capital goods are typically purchased to ________. They get included in GDP ________
A) replace raw materials; in the year they are produced B) enable the investor to produce other goods and services; in each year they are utilized C) enable the investor to consume less in the current period; as they are used up in the stages of production D) enable the investor to produce other goods and services; in the year they are produced E) none of the above
An LDC can experience economic development at virtually zero opportunity cost by
a. establishing a comprehensive banking system b. taxing its citizens at a higher rate c. bringing in foreign direct investment d. increasing its population growth rate e. giving up consumer goods to acquire capital goods
When marginal product ________ average product, average product must be ________.
A. is less than; increasing B. is greater than; increasing C. is greater than; decreasing D. Any of these is possible.