A pair of jeans cost $25 in the U.S. and 1600 dinar in Algeria. If the nominal exchange rate is 75 dinar per U.S. dollar, then the real exchange rate is
a. more than one, so a profit could be made by buying jeans in Algeria and selling them in the U.S.
b. more than one, so a profit could be made by buying jeans in the U.S. and selling them in Algeria.
c. less than one, so a profit could be made by buying jeans in Algeria and selling them in the U.S.
d. less than one, so a profit could be made by buying jeans in the U.S. and selling them in Algeria.
a
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Suppose for a regulated monopoly that price equals minimum ATC but price exceeds MC. This means that:
A. both productive and allocative efficiency are being achieved. B. productive efficiency is being achieved, but not allocative efficiency. C. allocative efficiency is being achieved, but not productive efficiency. D. neither productive nor allocative efficiency is being achieved.
In terms of framing, we respond better to:
A. negative framing. B. neither; research has shown that framing ultimately doesn't matter. C. consistent framing. D. positive framing.