If the exchange rate is such that $1 equals 20 Mexican pesos, then the price of a peso is
A. $1.
B. $0.20.
C. $2.
D. $0.05.
Answer: D
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Refer to Table 1-6. What is Ivan's marginal cost if he decides to stay open for six hours instead of five hours?
A) $10 B) $20 C) $25 D) $91.67
Which of the following would NOT be a reason why developed nations would try to coordinate their macroeconomic policies?
A) To achieve a desirable level of world economic growth B) To avoid imposing a disproportionate burden on one major country in its attempt to help other world economies C) To stimulate production in other countries using the higher incomes generated by policy coordination D) To coordinate retaliatory policies on developing countries' trade barriers
When positive externalities are present, it means that:
A. individuals don't take into account all the benefits associated with their market choice. B. society bears part of the cost borne of private transactions. C. individuals consume more than the social optimum. D. All of these statements are true.
Holding all else constant, an increase in preferences by Mexicans for U.S. goods will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; increase B. decrease; decrease C. increase; decrease D. decrease; increase