If a certain automotive part can be purchased in Mexico for 60 pesos or in the United States for $6.25 and if the nominal exchange rate is 8 pesos per U.S. dollar, then the automotive part:
A. is less expensive in Mexico.
B. costs the same in Mexico and the United States.
C. is more expensive in the United States.
D. is less expensive in the United States.
Answer: D
Economics
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Which of the following goods is most likely to have the lowest price elasticity?
A) movie tickets B) DVD rentals C) tap water D) pasta
Economics
Refer to the table below. If the attorney reviews 51 patents, what is the expected marginal benefit of reviewing the 51st patent?
The above below shows the quantity of patents reviewed by a firm's attorney and the corresponding probability that the firm will infringe on another firm's patent. The cost of infringement is $50,000.
A) -$40,000
B) $4,000
C) -$4,000
D) $40,000
Economics