Mary Green takes a summer course in London, England. She doesn't buy British pounds at the U.S. airport, where the rate is 1 pound = $1.60 . Upon arrival in London, she finds that she can buy pounds for $1.65 each. Which of the following is true?
a. Green would have been better off if she had bought pounds in the United States where U.S. dollars were cheaper.
b. Green would have been better off if she had bought pounds in the United States where pounds were less expensive.
c. The pounds were more expensive in London because a currency is always most valued in its home country.
d. The pounds were more expensive in the United States because they are less available there.
e. It doesn't matter where she buys the pounds, since she can't use U.S. money anyway once she's in England.
B
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Susan argues that she is the victim of economic discrimination. The primary technical difficulty for an economist investigating her claim will be
a. defining economic discrimination. b. finding a worker with the same productivity as Susan for comparison purposes. c. defining statistical discrimination. d. measuring Susan's human capital.
Data on trade barriers and the growth of per capita GDP indicate that
a. there is no link between the degree of a country's trade openness and its economic growth. b. more open economies have grown more rapidly than those that have imposed substantial barriers restricting trade. c. economies that have imposed high trade barriers have, on average, grown more rapidly than economies that are more open to international trade. d. countries with higher trade barriers have been able to achieve higher levels of per capita GDP than those that are more open to international trade. e. both c and d are correct.
Which type of market structure has the fewest number of firms?
If a bottle of soda and bottled juice are substitutes, when the price of soda rises
A) demand for bottled juice rises. B) demand for bottled juice falls. C) quantity of bottled juice demanded falls. D) quantity of bottled juice demanded rises.