Assume that the average consumer in mexico and the aver-, Ask an Expert

Economics

Assume that the average consumer in Mexico and the aver- age consumer in the United States buy the quantities and pay the prices indicated in the following table:

Food Transportation Services

	*Price*	*Quantity*	*Price*	*Quantity*
Mexico	5 pesos	400	20 pesos	200
United	$1	1,000	$2	2,000

States

a. Compute U.S. consumption per capita in dollars.

b. Compute Mexican consumption per capita in pesos.

c. Suppose that 1 dollar is worth 10 pesos. Compute Mexico's consumption per capita in dollars.

d. Using the purchasing power parity method and U.S. prices, compute Mexican consumption per capita in dollars.

e. Under each method, how much lower is the standard of living in Mexico than in the United States? Does the choice of method make a difference?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91574612

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question set up a ricardo-type comparative advantage

Question: Set up a Ricardo-type comparative advantage numerical example with two countries and two goods. Distinguish "absolute advantage" from "comparative advantage" in the context of your example. Then select an inter ...

Question calculating the break-even pointprior to

Question: Calculating the Break-Even Point Prior to completing this discussion, review Assignment 7 in Chapter 14 of your course text. In your initial post, address the following points: • What is the role provided by br ...

Question a donor wishes to endow an engineering scholarship

Question: A donor wishes to endow an engineering scholarship at USYD. The endowment may be made by a lump-sum deposit to a special foundation set up by the university for such purposes. The foundation director believes t ...

Question a compare and contrast the organization and

Question: a) Compare and contrast the organization and function of the ECB to the Federal Reserve. b) Explain how the two organizations differ in their ability to deal with a financial crisis like the ones in Europe in 2 ...

Question analyze the various factors contributing to

Question: Analyze the various factors contributing to poverty and determine which single factor plays the most significant role. Provide a specific example to support your response. Discuss how developed nations contribu ...

Question a common economic experiment is called the

Question: A common economic experiment is called the "ultimatum game." Subject A receives a small amount of cash, say $10. She can give some whole dollar amount to subject B, a stranger whom she cannot see and who cannot ...

Question - let y be a random variable distributed as shown

Question - Let Y be a random variable distributed as shown in the accompanying table. y 0 1 2 3 p(y) 0.4 0.3 0.2 0.1 A) Find the mean of Y or, E(Y). B) Find the standard deviation of Y, or sd(Y).

Question suppose two bonds apple inc and samsung

Question: Suppose two bonds (Apple Inc. and Samsung Electronics Co., Lid) are traded in the bond market and Ms. Wilson needs your advice on which one to buy. For the Apple bond, there is a probability of 60% (hat this bo ...

Question the marginal utility of the last unit of apples

Question: The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last unit of bananas consumed is 8. What set of prices for apples and bananas, respectively, would be consistent wi ...

Question - suppose there are 100 commuters that use a strip

Question - Suppose there are 100 commuters that use a strip of highway to get to work. They all drive alone and prefer to drive in big cars - it gives them more prestige a makes them feel safer. Bigger cars cost more per ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert