Week 6 Quiz Essay

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Grade Details - All Questions 1. Question : (TCO F) The size of the labor force in a community is 500, and 400 of these folks are gainfully employed. In this community, 100 people over the age of 16 do not have a job and are not looking for work. In addition, 200 people in the community are under the age of 16. The unemployment rate is ______. Student Answer: 500 total -400 working = 100 not working. 100/500= 1/5 = 20% unemployment rate of people 16 or over. Instructor Explanation: The unemployment rate is calculated by dividing the number of unemployed by the labor force. The labor force is calculated by subtracting three things from the population (# under 16, # of institutionalized adults, and # not looking for work). In…show more content…
So, in this case, it would take fewer dollars to purchase the same amount of Japanese Yen, U.S. goods become more expensive to Japanese buyers, and Japanese goods become cheaper to U.S. buyers. A country such as China might choose to peg their currency to the U.S. dollar to keep prices stable for a key trading partner like the U.S. If the U.S. dollar would appreciate considerably against most currencies, this would not affect China trade with the U.S., but Chinese goods would become more expensive to their other trading partners, and could cause Chinese exports to these other markets to decrease. Points Received: 20 of 20 Comments: 5. Question : (TCO E) Suppose the Canadian dollar (C$) price of one British pound is C$2.12. A hotel room in London costs 120 pounds, while a similar hotel room in Toronto costs C$250. In which city is the hotel room cheaper, and by how much? Student Answer: London 120 x C$2.12= $254.40 Toronto is C$250. [254.40-250]= C$4.40 The Toronto room would be cheaper by C$4.40 Canadian dollars. Instructor Explanation: Since the exchange rate is 1 pound = C$2.12, we can convert the price of the hotel room in London to Canadian dollars and then be able to compare. 120 pounds = C$(120 x 2.12) = C$254.4. Since the hotel room in Toronto costs C$250.00 it must be that the hotel room costs C$4.40 more in London. Points Received: 15

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