If a bushel of wheat costs $6.40 in the United States, costs 40 pesos in Mexico, and the nominal exchange rate is 10 pesos per dollar, then the real exchange rate is
a. 1.60
b. 1.25
c. .625
d. None of the above is correct.
a
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Property owned by governments is called:
A. Private property B. Shared property C. Public property D. Common property
Keith is a perfectly competitive carnation grower. The market price is $2 per dozen carnations. Keith's average total cost to grow carnations is $2.50 per dozen. In the long run, Keith will
A) raise his price to more than $2.50 per dozen carnations. B) raise his price to $2.50 per dozen carnations. C) exit the industry if the price and his costs do not change. D) incur an economic loss. E) continue to make an economic profit.
If unit costs decrease as the quantity of production increases and all inputs are variable, then a firm is experiencing
A) constant returns to scale. B) economies of scale. C) diseconomies of scale. D) falling economies of scope.
What percentage of GDP comes from agriculture in the high-income economies of the world?
a. 1 percent b. 2 percent c. 3 percent d. 4 percent