Multiple Choice
If a lobster in Maine costs $10 and that the same type of lobster in Massachusetts costs $30,then people could make a profit by
A) buying lobsters in Maine and selling them in Massachusetts.This action would increase the price of lobster in Massachusetts.
B) buying lobsters in Maine and selling them in Massachusetts.This action would decrease the price of lobster in Massachusetts.
C) buying lobsters in Massachusetts and selling them in Maine.This action would increase the price of lobster in Massachusetts.
D) buying lobsters in Massachusetts and selling them in Maine.This action would decrease the price of lobster in Massachusetts.
Correct Answer:
Verified
Correct Answer:
Verified
Q11: If purchasing power parity holds,then if the
Q12: If over the next few years inflation
Q13: If the exchange rate is 8 Moroccan
Q14: If purchasing-power parity holds but then U.S.prices
Q15: On behalf of your firm,you make frequent
Q17: A pair of running shoes costs $70
Q18: According to purchasing-power parity,inflation in the U.S.causes
Q19: Purchasing-power parity theory does not hold at
Q20: If purchasing-power parity holds,the price level in
Q21: Suppose a Starbucks tall latte costs $4.00