Which of the following is not true regarding "exchange rate indexes?"
A) They will all show the same general trends (i.e., appreciation or depreciation).
B) Neither economic theory nor practice gives a clear indication of which exchange rate is best.
C) For short-term movements, there can be large differences across exchange rate indexes.
D) Exchange rate indexes are used to measure the average value of a currency relative to several other currencies.
C
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A monopoly can successfully price discriminate as long as there are no close substitutes for its product
a. True b. False Indicate whether the statement is true or false
If an economy can produce various combinations of food and shelter along a production possibilities curve (PPC), then if we increase the production of shelter along the PPC, which of the following is true?
a. We cannot change the production of food. b. We must decrease the production of food. This forgone food production represents the opportunity cost of the increase in shelter. c. We also increase the production of food. d. The concept of opportunity cost does not apply along PPC.