If a Japanese Toyota sells for 2,500,000 yen and the nominal exchange rate is 110 yen/ $ U.S., then the dollar price of the Japanese automobile is:
A. $22,727.
B. $25,000.
C. $20,000.
D. 22,727 yen.
Answer: A
You might also like to view...
Monopolization of the labor market restricts output because
A) fewer workers offer their services. B) the higher wage raises the firm's marginal cost. C) monopolized workers are less productive. D) a monopolized labor market means there is also a monopolized output market.
The full-employment level of real GDP is the level which can be produced with: a. given technology and productive resources
b. frictional and structural unemployment equal to zero. c. cyclical unemployment equal to zero. d. both a and b. e. both a and c.
Assume that the central bank purchases government securities in the open market. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. Real GDP falls, and net nonreserve-related international borrowing/lending becomes s more negative (or less positive). b. Real GDP rises, and net nonreserve-related international borrowing/lending becomes s more negative (or less positive). c. Real GDP falls, and net nonreserve-related international borrowing/lending becomes s more positive (or less negative). d. Real GDP and net nonreserve-related international borrowing/lending remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
In a monopolistically competitive industry, firms set price
a. equal to marginal cost since each firm is a price taker. b. below marginal cost since each firm is a price taker. c. above marginal cost since each firm is a price setter. d. always a fraction of marginal cost since each firm is a price setter.