All else being equal, if the rate of growth in productivity in Spain is greater than the rate of growth in productivity in the United States, the euro
A) will decrease in value relative the U.S. dollar.
B) will nominally depreciate against the dollar, but its real value relative to the dollar will remain unchanged.
C) will increase in value relative to the U.S. dollar.
D) will nominally appreciate against the dollar, but its real value relative to the dollar will remain unchanged.
C
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Upon graduating from high school you have a job offer which would provide you with $20,000 in income for the coming year. You have also been accepted to Isaac and Avery college. Tuition for the coming year at I&A college is $15,000 . room and board is $10,000 and you expect that books will cost you $2,000 . What is the opportunity cost of attending I&A college?
a. $37,000 b. $27,000 c. $20,000 d. $32,000 e. $47,000
Exhibit 10-7 Two-Firm Payoff Matrix
Suppose costs are identical for the two firms in Exhibit 10-7. If both firms assume the other will compete and charge a lower price, equilibrium will be established by:
A. Camel charging the high price and Marlboro charging the high price. B. Camel charging the low price and Marlboro charging the low price. C. Camel charging the low price and Marlboro charging the high price. D. Camel charging the high price and Marlboro charging the low price.