This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A lawn mower costs 500 in the US and 5188 Mexican Pesos in Mexico. The current exchange rate is ... (Read 78 times)

jon_i

  • Hero Member
  • *****
  • Posts: 549
on: Jul 1, 2018
A lawn mower costs 500 in the US and 5188 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

Question 2

Which of the following problems are created by an information asymmetry
 a. Moral hazard
 b. Adverse selection
  c. Both of the above
  d. None of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bdobbins

  • Sr. Member
  • ****
  • Posts: 326
Reply #1 on: Jul 1, 2018
Answer to Question 1

a

Answer to Question 2

c


jon_i

  • Member
  • Posts: 549
Reply 2 on: Jul 1, 2018
Wow, this really help

xthemafja

  • Member
  • Posts: 348
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

A Glitch Interrupts the Vela Pulsar’s Spindown Rate A Glitch Interrupts the Vela Pulsar’s Spindown Rate
Top Ten States Ranked by Rate or Reported Bacterial STI Cases in 2011 Top Ten States Ranked by Rate or Reported Bacterial STI Cases in 2011
Target Heart Rate Target Heart Rate
Total Fertility Rate in the United States, 1860–2008 Total Fertility Rate in the United States, 1860–2008
Find the voltage, current and power for each resistor in the circuit below Find the voltage, current and power for each resistor in the circuit below
Lawn Tennis Lawn Tennis
Video: Rena arc construction

For a complete list of videos, visit our video library