Author Question: A lawn mower costs 500 in the US and 5188 Mexican Pesos in Mexico. The current exchange rate is ... (Read 40 times)

jon_i · **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