How does a person's perception of whether a good is a necessity or a luxury affect his or her purchases of it?
(A) People will not purchase necessities if the price increases.
(B) A good that is perceived as a necessity will be purchased even if the price rises.
(C) People who have a lot of money will buy goods even if they think they are a luxury.
(D) A good that is perceived as expensive will no longer be considered a necessity.
Ans: (B) A good that is perceived as a necessity will be purchased even if the price rises.
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a. True b. False
If the U.S. dollar appreciates relative to the Brazilian cruzeiro, then
a. the U.S. dollar-cruzeiro exchange rate will increase b. U.S. goods become less expensive in Brazil c. Brazilian goods become more expensive in the U.S. d. Brazilian investors will pay fewer cruzeiros to buy each U.S. dollar e. the U.S. will import more from Brazil