Suppose India and France have the same PPF, shown in the figure above. Based on their current production points, which is France's most likely future PPF?
A) PPF2
B) PPF1
C) PPF0
D) either PPF0 or PPF1
E) None of the above because economic growth will not happen in India.
B
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Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one of the tickets is $36
A) Walter will receive $4 of consumer surplus from buying one ticket. B) Violet and Walter receive a total of $52 of consumer surplus from buying one ticket each. No one else will buy a ticket. C) Violet and Walter will each buy two tickets. D) Xavier, Yolanda, and Zachary will receive a total of $68 of consumer surplus since they will buy no tickets.
An increase in demand for a nation's currency in the foreign exchange market will:
a. cause the nation's currency to appreciate. b. make it more expensive for the nation to import goods. c. cause the nation's balance on current account to shift toward a surplus. d. make it less expensive for foreigners to buy the nation's goods.
How can one profit through arbitrage if the dollar per euro exchange rate in London is $2 per pound while in New York is $1.95 per pound?
A. Buy pounds in London and sell them in New York B. Buy dollars in London and sell pounds in New York C. Buy dollars in New York and sell them in London D. Buy pounds in New York and sell them in London
Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 100 Japanese yen, but it finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?
A. Buy U.S. dollars. B. Sell U.S. dollars. C. Encourage U.S. investments abroad. D. Buy more Japanese goods.