If the dollar/pound exchange rate is $2/£, a Big Mac costs $5 in New York City and costs £4 in London, the pound is ________, and U.S. tourists will be ________
A) overvalued; better off in London
B) overvalued; better off in New York
C) undervalued; better off in London
D) undervalued; better off in New York
B
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When ________ in a market, the total net benefit to society is maximized
A) deadweight loss is maximized B) consumer surplus is minimized C) producer surplus is minimized D) a competitive equilibrium is achieved
Alan Kulikoff (2000) maintains that the opportunity to own land privately provided many individuals with incentive to relocate to colonial America and accept the associated risks
Indicate whether the statement is true or false
If real GDP falls from one period to another and the price level stays the same, we can conclude that
A. Nominal GDP also decreased. B. Inflation increased. C. Nominal GDP increased. D. NDP also decreased.
What potential economic problem can arise with a guaranteed payment contract for professional athletes that is not related to performance?
Please provide the best answer for the statement.