International comparisons of per capita GDP may not reflect the standard of living because __________.
a. currency exchange rates may not fully account for differences in purchasing power, and thus people in a country with high per capita GDP may have a lower standard of living because of high local prices for food, housing, or other necessities.
b. people in some countries enjoy poverty and do
not mind a lack of access to medicine, education, nutritious food, and safe drinking water.
c. markets do not exist in less-developed countries.
d. None of the answers above are correct.
a
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What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.)U.S. residents purchase Mexican products and pay for them with Mexican pesos
a. Debit the U.S. financial account; credit the U.S. current account. b. Credit the U.S. financial account; debit the U.S. current account. c. Debit the U.S. financial account; credit the U.S. financial account. d. Credit the U.S. financial account; debit the U.S. financial account. e. Credit the U.S. financial account; debit the U.S. net errors and omissions account.
Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. Kate decides to play the second game. Kate's expected value of payoff is:
A. $5.00. B. $5.75. C. $4.50. D. $4.00.