A shadow price is:
(a) the price in the previous period.
(b) the price in the next period.
(c) the social value of a good or service.
(d) the market value of a good or service.
(e) none of the above.
C
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Suppose the exchange rate of the U.S. dollar was 1.00 euro = $0.50 on Thursday, and on Friday the exchange rate was $1.00 = 2.10 euros. Which of the following best explains what has happened between Thursday and Friday?
A) The U.S. dollar appreciated against the euro. B) The euro appreciated against the U.S. dollar. C) The U.S. dollar depreciated against the euro. D) Both answers B and C are correct.
Which is not a key economic question?
a. What goods and services should be produced? b. How should these goods and services be produced? c. Who consumes these goods and services? d. How should these goods and services be paid for?