LSC MICROECONOMICS
LSC MICROECONOMICS
21st Edition
ISBN: 9781260186697
Author: McConnell
Publisher: MCG
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Chapter 22, Problem 7DQ
To determine

The price parity.

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What is an export parity price? Give an export parity price for a specified commodity. (starting with the f.o.b price)
Assume the value of a country's currency is 1 when the price level is 1.2. Instructions: Enter your answers rounded to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. If the price level changes to 1.4, by how much in percentage terms will the value of the country's currency change? percent Now assume that the value of the country's currency is equal to 1 when the price level is 2. If the price level changes to 0.8, by how much will the value of the country's currency change? percent
American apparel makers complain to Congress about competition from China. Congress decides to impose either a tariff or a quota on apparel imports from China. Which policy would Chinese apparel manufacturers prefer? LO26.4   a. Tariff. b. Quota.
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