A Big Mac costs $4.00 in Canada and 9.00 reals in Brazil. If the exchange rate is 2 reals per dollar, what is the dollar cost of a Big Mac in Brazil?
A) $0.89
B) $2.25
C) $4.50
D) $8.00
Ans: C) $4.50
Economics
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When the economy experiences abnormally high unemployment,
A. There is macro instability. B. The economy is producing on the production possibilities curve. C. No market failure occurs. D. There is government failure.
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At a perfectly competitive firm's short-run break-even price
A. P > AVC, but P < AFC. B. TR is more than TC. C. P = ATC. D. the average cost is below the total revenue line.
Economics