Author Question: How many British pounds would it cost to buy a pair of American designer jeans costing 45 if the ... (Read 62 times)

evelyn o bentley · **on:** Jun 30, 2018

How many British pounds would it cost to buy a pair of American designer jeans costing 45 if the exchange rate is 1.60 dollars per British pound?

A) 38.125 British pounds
B) 28.125 British pounds
C) 48.125 British pounds
D) 58.125 British pounds
E) 18.125 British pounds

Question 2

A reason why it is difficult for developing countries to maintain a cartel is that

A) the elasticity of demand for a cartel's output decreases over time.
B) producers in the cartel have an economic incentive to cheat.
C) economic profits discourage other producers from entering the industry.
D) producers in the cartel have the motivation to lower prices but not to raise prices.
E) tariffs allow producers in the cartel to produce items that make no profit.