Q.21 Options A. Q.22 Which of the following statements is/are FALSE? The interest rate parity theory says that the interest rates on similar assets in two countries will always be the same B. The real exchange rate between two countries is the rate at which a particular basket of products produced in one country can be traded with a similar basket produced in another country C. The Purchasing Power Parity theory says that the total prices of any basket of products which apply in two different countries will be the same, if the prices are expressed in the same currency using the current exchange rate D. The arbitrage pricing theory says that the prices which producers in different countries set for a particular product will be the same if the prices are expressed in the same currency using the current exchange rate Answer: Given 15 Question Type: MSQ Question ID: 6420086576 In an economy, the effort level of a worker in firm i is denoted by e, and depends on the wage W, received by the worker from the firm, and the minimum wage Wo is set by the government. The effort function is given by ei (W₁, Wo)=√√W₁ - Wo If the firm employs N₁ unit of workers, then the efficiency unit of labour employed by the firm is e, N₁. The production is based on only the efficiency unit of labour. and the production function is given by F(e,N₂) = loge (eN₁) If the minimum wage set by the government is 10. and the profit maximizing firms sell the good in a competitive market at price P by choosing W, and N₁, then the profit maximizing wage set by the firm will be (rounded off to one decimal place). Status: Marked For Review Chosen Option: B,C. Question Type: NAT Question ID: 6420086582 Status: Answered
Q.21 Options A. Q.22 Which of the following statements is/are FALSE? The interest rate parity theory says that the interest rates on similar assets in two countries will always be the same B. The real exchange rate between two countries is the rate at which a particular basket of products produced in one country can be traded with a similar basket produced in another country C. The Purchasing Power Parity theory says that the total prices of any basket of products which apply in two different countries will be the same, if the prices are expressed in the same currency using the current exchange rate D. The arbitrage pricing theory says that the prices which producers in different countries set for a particular product will be the same if the prices are expressed in the same currency using the current exchange rate Answer: Given 15 Question Type: MSQ Question ID: 6420086576 In an economy, the effort level of a worker in firm i is denoted by e, and depends on the wage W, received by the worker from the firm, and the minimum wage Wo is set by the government. The effort function is given by ei (W₁, Wo)=√√W₁ - Wo If the firm employs N₁ unit of workers, then the efficiency unit of labour employed by the firm is e, N₁. The production is based on only the efficiency unit of labour. and the production function is given by F(e,N₂) = loge (eN₁) If the minimum wage set by the government is 10. and the profit maximizing firms sell the good in a competitive market at price P by choosing W, and N₁, then the profit maximizing wage set by the firm will be (rounded off to one decimal place). Status: Marked For Review Chosen Option: B,C. Question Type: NAT Question ID: 6420086582 Status: Answered
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Q.21
Options A.
Q.22
Which of the following statements is/are FALSE?
The interest rate parity theory says that the interest rates on similar assets in two
countries will always be the same
B.
The real exchange rate between two countries is the rate at which a particular basket
of products produced in one country can be traded with a similar basket produced
in another country
C.
The Purchasing Power Parity theory says that the total prices of any basket of
products which apply in two different countries will be the same, if the prices are
expressed in the same currency using the current exchange rate
D.
The arbitrage pricing theory says that the prices which producers in different
countries set for a particular product will be the same if the prices are expressed in
the same currency using the current exchange rate
Answer:
Given 15
Question Type: MSQ
Question ID: 6420086576
In an economy, the effort level of a worker in firm i is denoted by e, and depends
on the wage W, received by the worker from the firm, and the minimum wage Wo
is set by the government. The effort function is given by
ei (W₁, Wo)=√√W₁ - Wo
If the firm employs N₁ unit of workers, then the efficiency unit of labour employed
by the firm is e, N₁. The production is based on only the efficiency unit of labour.
and the production function is given by
F(e,N₂) = loge (eN₁)
If the minimum wage set by the government is 10. and the profit maximizing firms
sell the good in a competitive market at price P by choosing W, and N₁, then the
profit maximizing wage set by the firm will be
(rounded off to one
decimal place).
Status: Marked For Review
Chosen Option: B,C.
Question Type: NAT
Question ID: 6420086582
Status: Answered
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