Imagine that there are only two nations in the world, the United States and Mexico. If Mexico experiences a drop in the price of foreign exchange, people in Mexico will
a. have to buy more U.S. currency, because prices of imports from the United States will have increased
b. end up buying less U.S. currency, because U.S. prices on goods will decrease to everyone
c. be able to afford less U.S. currency, and imports from the United States will be more expensive
d. be able to afford more U.S. currency, and imports from the United States will be cheaper
e. be able to afford more U.S. currency, and imports from the United States will be more expensive
D
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What will be an ideal response?
Prices and wages tend to be:
A. flexible both upward and downward. B. inflexible both upward and downward. C. flexible downward, but inflexible upward. D. flexible upward, but inflexible downward.
What is one reason patents are required?
A) Information concerning innovation is private and secure. B) Human nature is corrupt. C) Information concerning innovation is generally not private and secure. D) The patent only makes things better in the short run.
If one person has all the income and everyone else has none, the Gini ratio is 1
Indicate whether the statement is true or false