If the purchasing power parity theory were literally true
a. we should see some nations devaluing their currencies relative to the U.S. dollar while other nations revalue their currencies
b. the price of a traded good should be the same everywhere in the world
c. the price of a Big Mac should be the same everywhere in the world
d. the exchange rate should be the same everywhere in the world
e. prices should tend toward equality with exchange rates
B
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If the marginal social cost of a good equals the marginal private cost of the good, then the marginal external cost of the good
A) is zero. B) equals the marginal social cost. C) equals the marginal social benefit. D) equals the marginal private benefit.
If supply increases, the equilibrium price will rise and the equilibrium quantity will fall
a. True b. False Indicate whether the statement is true or false