Suppose that the nominal exchange rate between the U.S. dollar and the Canadian dollar is 0.75 U.S. dollars per Canadian dollar. If Canada's rate of inflation is 0 percent and the U.S. rate is 10 percent, then the real exchange rate for the U.S. dollar will
A) appreciate by about 9 percent.
B) appreciate by 10 percent.
C) depreciate by about 9 percent.
D) depreciate by 10 percent.
A
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Which of the following statements correctly identifies a difference between labor and land?
A) Land can be rented but not owned by a firm, whereas labor can be rented or owned. B) Labor can be rented but not owned, whereas land can be rented or owned by a firm. C) Labor is hired until a point where the marginal product of labor equals the price of labor, whereas land is rented until a point where the average product of land equals the price of land. D) Labor is hired until a point where the average product of labor equals the price of labor, whereas land is rented until a point where the marginal product of land equals the price of land.
Which of the following workers is most likely to be asked to post a bond?
A) construction contractor B) fast food worker C) sanitation worker D) book author