When quantity supplied equals quantity demanded,
A. there is disequilibrium.
B. the market is cleared.
C. there is excess quantity demanded.
D. there is excess quantity supplied.
B. the market is cleared.
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The "Big Mac Theory of Exchange Rates" tests the accuracy of purchasing power parity theory. In July 2015, the Economist reported that the average price of a Big Mac in the United States was $4.79
In Mexico, the average price of a Big Mac at that time was 49 pesos. If the exchange rate between the dollar and the peso was 13.60 pesos per dollar, how would purchasing power parity predict the exchange rate will change in the long run? Support your answer graphically.
The total dollar value of purchases in the economy is far larger than GDP primarily because: a. GDP ignores taxes
b. GDP excludes the value of intermediate goods exchanged. c. GDP excludes the output from foreigners working in America. d. GDP ignores production in the home
The Federal Reserve System:
A. has the same status as the Supreme Court. B. is basically an independent agency. C. has the status of a congressional committee. D. is an agency of the executive branch of the federal government.
Aimee sells hand-embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $42,000, and the opportunity costs of her business are $30,000. What is her economic profit?
A) $12,000 B) $56,000 C) $86,000 D) $98,000