Sometimes the only information that is available with the employers when they hire someone is information that may be imperfectly related to productivity in general and may not apply to a particular person at all

If the average productivity of Canadian firms is rising more quickly than the average productivity of Indian firms, which of the following would you expect to see?

A) an increase in the value of the rupee relative to the dollar B) a decrease in the prices of Indian products C) a decrease in the quantity demanded of Indian products relative to Canadian products D) an increase in the quantity demanded of Indian products relative to Canadian products

According to the purchasing power parity theory, a rise in the United States price level of 5 percent, and a rise in the Mexican price level of 6 percent cause

A) the dollar to appreciate 1 percent relative to the peso. B) the dollar to depreciate 1 percent relative to the peso. C) the dollar to depreciate 5 percent relative to the peso. D) the dollar to appreciate 5 percent relative to the peso.