If a couple plans to stay at a hotel for a week on the beaches of Tulum, Mexico, and it costs 7,000 pesos, _____.
(A) With an exchange rate of 9.5 pesos per dollar, the hotel stay will cost $777.77.
(B) With an exchange rate of 11 pesos per dollar, the hotel stay will cost $636.36.
(C) With an exchange rate of 9 pesos per dollar, the hotel stay will cost $823.53.
(D) With an exchange rate of 12 pesos per dollar, the hotel stay will cost $608.70.
Ans: (B) With an exchange rate of 11 pesos per dollar, the hotel stay will cost $636.36.
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In the above figure, if the interest rate is 3 percent per year, the quantity of money demanded is
A) greater than the quantity of money supplied, and the demand for money curve will shift. B) greater than the quantity of money supplied, and the supply of money curve will shift. C) less than the quantity of money supplied, and the demand for money curve will shift. D) greater than the quantity of money supplied, and the interest rate will change. E) less than the quantity of money supplied, and the interest rate will change.
From a firm's viewpoint, opportunity cost is the
A) best alternative use customers can find for the firm's output. B) cost the firm must pay for the factors of production it employs to attract them from their best alternative use. C) accounting cost of resources. D) price a firm can charge for its output. E) cost of acquiring the opportunity to sell to its customers.