Author Question: Purchasing power parity is the theory that, in the long run, exchange rates move to equalize A) ... (Read 139 times)

jerry coleman

  • Hero Member
  • *****
  • Posts: 570
Purchasing power parity is the theory that, in the long run, exchange rates move to equalize
 
  A) the relative purchasing power of currencies across countries.
  B) nominal interest rates across countries.
  C) real GDP across countries.
  D) corporate profits across countries.

Question 2

Refer to Figure 4-3. At the price P2, consumers are willing to buy the Q2 pounds of granola. Is this an economically efficient quantity?
 
  A) Yes, because the price P2 shows what consumers are willing to pay for the product.
  B) No, the marginal benefit of the last unit (Q2 ) exceeds the marginal cost of that last unit.
  C) Yes, otherwise consumers would not buy Q2 units.
  D) No, the marginal cost of the last unit (Q2 ) exceeds the marginal benefit of the last unit.



jamesnevil303

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

A

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

For a complete list of videos, visit our video library