A lawn mower costs $500 in the US and 8188 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
b
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Federal Deposit Insurance Corporation (FDIC)
Suppose total planned expenditures equal $20 trillion when the value of the price level is 100. If the price level drops to 90, total planned real expenditures will equal
A) more than $20 trillion. B) $20 billion. C) less than $20 trillion. D) None of the above: Cannot be determined without additional information.
Perfect competition is the term used to describe
A. an industry in which all businessmen are honest and accommodating. B. an industry in which numerous firms produce identical products. C. an industry untouched by government regulation. D. the kind of industry any American would support.
In which of the following economic activities do we commonly find a proprietor acting as a supervisor, a provider of capital, and a residual claimant?
a. A multinational bank b. An oil exploration company c. A small medical store d. An aircraft manufacturer