According to the theory of purchasing power parity, if the price of haircuts in the United States is lower than those in Mexico,
A) U.S. exports should increase.
B) there would be little effect in both currency and services markets.
C) the value of the peso should fall by a large amount.
D) the value of the dollar should rise by a large amount.
E) Mexican imports should rise.
B
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Two categories of expenses in merchandising companies are
a. cost of goods sold and financing expenses. b. operating expenses and financing expenses. c. cost of goods sold and operating expenses. d. sales and cost of goods sold.
John's Repair Shop has fixed a stereo. The customer wants to take the stereo and pay for it in thirty days if the repair work is satisfactory. Which of the following is true?
A) John's has the right to keep the stereo until the customer pays for the repair. B) John's can't keep the stereo, but must release it and sue on the contract if the customer doesn't pay. C) John's must let the customer take the stereo and try it out to see if the repairs are satisfactory. D) John call see the stereo if payment is not made within three days. E) Both B and C