Prices in both the U.S. and India rise, but prices in India increase by a smaller percentage. According to purchasing-power parity the U.S. dollar
a. gains value both in terms of the domestic goods and services it can buy and in terms of the Indian currency it can buy.
b. gains value in terms of the domestic goods and services it can buy, but loses value in terms of the Indian currency it can buy.
c. loses value in terms of the domestic goods and services it can buy, but gains value in terms of the Indian currency it can buy.
d. loses value both in terms of the domestic goods and services it can buy and in terms of the Indian currency it can buy.
d
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Interlace, Inc produces and a unique soda. The company cannot price discriminate. The figure above shows Interlace's demand curve, marginal revenue curve, and marginal cost curve. When Interlace maximizes its profit, the deadweight loss is
A) zero. B) $15,000. C) $21,000. D) $3,000.
Refer to Table 2-4. Which of the following statements is true?
A) George has an absolute advantage in both tasks. B) Jack has an absolute advantage in both tasks. C) Jack has an absolute advantage in lawn mowing and George in garden cultivating. D) Jack has an absolute advantage in garden cultivating and George in lawn mowing.
Once a product becomes established, network externalities may create ________ costs that make consumers reluctant to buy a new product with better technology
A) switching B) marginal C) external D) implicit
Which of the following is not a characteristic of less-developed countries?
a. High rates of illiteracy. b. High unemployment. c. Over half of the labor force in agriculture. d. Low savings and investment rates. e. Low infant mortality rates.