A lawn mower costs $500 in the US and 5188 Mexican Pesos in Mexico. The current exchange rate is 1USD=12.97MXN. At this rate,
a. The good costs more in the US
b. The good costs more in Mexico
c. The good costs the same across the two countries
d. None of the above
a
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Ending the "Great Inflation" era in the 1970s is an example of
A) inflation targeting. B) exchange rate targeting. C) central bank independence. D) appointment of a more conservative central banker. E) all of the above.
An increase in the price of good X causes the demand for good Y to shift inward. One can conclude that X and Y are:
a. complements. b. substitutes. c. unrelated goods. d. normal goods. e. exceptions to the law of demand.
Automatic stabilizers are government programs that tend to push the federal budget toward surplus as the real GDP rises and toward deficit as the real GDP falls
a. True b. False Indicate whether the statement is true or false
Suppose you are viewing a graph of the total revenue generated from the sale of bananas. On the horizontal axis the numbers indicate the quantity of bananas. On the vertical axis the numbers indicate total revenue. Suppose there are two lines on the graph, A and B, and they only meet when quantity is zero. If, at an output of 10,000 bananas, A lies above B, we can say that
a. A corresponds to more bananas than B b. A represents average revenue at a lower price than B c. A represents marginal revenue at a higher price than B d. A represents total revenue at a higher price than B e. A represents total revenue at a lower price than B