GNI and PPP data are useful because they provide a dynamic analysis of economic development.

The major factor contributing to the depreciation of the Euro in 1999 and 2000 was:

A) low interest rates in the U.S. relative to Europe. B) high interest rates in the U.S. relative to Europe. C) trade barriers in Europe. D) none of the above.

Figure 9.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. If buyers believe that 50% of the used bikes are lemons (low quality), how much will they be willing to pay for a used bike?

A. $50 B. $80 C. $125 D. $200