Purchasing power parity is the theory that nominal exchange rates are determined:
A. by real exchange rates.
B. as necessary for the law of one price to hold.
C. by the forces of supply and demand.
D. as necessary to achieve the fundamental value of the exchange rate.
Answer: B
Economics
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In the above figure, the intersection of curves A and B is the point at which
A) average total cost is minimized. B) average variable cost is minimized. C) average fixed cost is minimized. D) total product is maximized.
Economics
Refer to the above table. The table represents information on the costs for Ajax Corporation. Ajax operates in a perfectly competitive market and the price of the product is $7. What does profit equal when quantity equals 2?
A) $14 B) -$2 C) $16 D) $2
Economics