Three-wheel cars made in North Edsel are sold for 5000 pounds. Four-wheel cars made in South Edsel are sold for 10,000 marks. The nominal exchange rate between the two countries is three marks per pound
The real exchange rate between the two countries is A) 0.50 three-wheel cars per four-wheel car.
B) 0.66 three-wheel cars per four-wheel car.
C) 1.50 three-wheel cars per four-wheel car.
D) 2.00 three-wheel cars per four-wheel car.
B
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What would be the best description of what we assume about money prices in the short run?
A) Money prices of goods and services vary. B) Money prices of goods and services not related to each other. C) Money prices of goods are fixed. D) Money prices of services are fixed. E) Money prices of goods and services are only temporarily fixed.
The marginal factor cost curve for a monopsony:
A. is the labor supply curve. B. lies below the labor supply curve. C. lies above the labor supply curve. D. is unrelated to the labor supply curve.