Yesterday, one could get £2 for $1. Today, however, one can only get £1.5 for $1. Which of the following best describes this scenario?
a) The pound depreciated against the dollar.
b) The pound appreciated against the dollar.
c) The dollar appreciated against the pound.
d) The purchasing power parity increased between the two currencies.
Ans: b) The pound appreciated against the dollar.
Economics
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Economics
In the competitive market for balloon rides, marginal social cost equals marginal social benefit when 3,000 balloon rides a day are taken and the price of a ride is $130. Which of the following statements is TRUE?
A) There is a free-rider problem. B) Too many rides are available. C) Too few rides are available and the price of a balloon ride is too high. D) The efficient quantity of balloon rides is 3,000 a day.
Economics