John wants to buy a new lawn mower. He can either buy it in the US and pay $500 or buy it in Mexico and pay 6188 Mexican Pesos. At the exchange rate of 1 Mexican Peso=0.771US$, ignoring any other costs, he would
a. Prefer buying in the US
b. Prefer buying in Mexico
c. Be indifferent about where he buys his television
d. None of the above
b
You might also like to view...
The Congress of Industrial Organizations was made up of an organization of craft unions
Indicate whether the statement is true or false
Normally an increase in the supply of a good will cause
a. a shift of consumer preferences in favor of that good. b. consumers to use more of that good and less of others. c. a shift of consumer preferences away from that good. d. consumers to use less of that good and more of others.
When government mandates participation in a program to solve an information asymmetry problem, it is trying to prevent:
A. building a reputation. B. illegal screening. C. moral hazard. D. adverse selection.
Considering primarily the effects through the price level, interest rates, and income, expansionary fiscal policy:
A. reduces both the supply and demand for dollars. B. increases the supply of dollars but reduces the demand. C. increases both the supply and demand for dollars. D. reduces the supply of dollars and increases the demand.