Compute mexican consumption per capita in pesos

Assignment Help Econometrics
Reference no: EM131133020

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

496_cf0e0b1f-4c79-4ebb-8a28-903e08063f34.png

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?

Reference no: EM131133020

Questions Cloud

Goals that you would want to meet before you begin investing : Describe two financial goals that you would want to meet before you begin investing.- Explain why you would want to reach those goals first.
Explain the actions surrounding the event you described : Apply the ideas from the two theories you summarized to explain the actions surrounding the event you described. Describe how the theories helped you gain an understanding of child development
Did arlene control her group as an effective leader : Did Arlene control her group as an effective leader? Should leaders give democratic choice equally for all parties involved? Arlene cautioned Watson and Chadwick several times about continuing their ascent
The characteristics of an effective and efficient team : the Characteristics of an Effective and Efficient Team? - Team building is a very vital tool in any organisation today.
Compute mexican consumption per capita in pesos : 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?
What signs of opulence do you see in louis court : What signs of opulence do you see in Louis' court and why do you believe Louis said "I am the state"?
Was the krakow ghetto located in gorlice : in the 1940's, when jewish ghettos were being established as a part of the holocaust, was the krakow ghetto located in gorlice?
Nature of sparta after lycurgus reforms : Compare the accounts of the Lycurgan reforms in Plutarch's Lycurgus and Xenophon's Spartan Society. To what extent do they agree about the nature of Sparta after Lycurgus' reforms?
Diversity within the organizations and communities : Think about Greenleaf's principles of servant leadership and what you have learned about the biblical foundation of servant leadership. Identify specific principles of servant leadership that, when employed effectively.

Reviews

Write a Review

Econometrics Questions & Answers

  What are the excess reserves and required reserves

Assume a depository institution holds vault cash of $3 million, reserve deposits at the Fed of $25 million, and has borrowed $2 million from the Fed's discount window. If that institution holds $300 million in transactions deposits and is subject ..

  What is probability distribution of equivalent construction

a road between fairbanks and Nome, alaska, will have a most likely construction of $4 million per mile. Doubling this cost is considered to have a probability of 30%, and cutting it by 25% is considered to have a probability of 10%. the states int..

  What percentage would you expect the quantity of tires

indicate that the short run price elasticity of demand for tires is 0.9. If an increase in the price of petroleum /used in producing tires) causes the market prices of tires to rise from $50 to $60

  Calculate real gdp for this economy in 2003

Nominal GDP uses current prices as a measure of the value of goods and services produced, while real GDP uses prices of goods and services in a base year to measure value. Suppose an economy consists of three goods: pizza, sodas, and televisions.

  Determine what is the present worth of the project

An asset in the 5-yr. MACRS property class cost $100,000 and has no salvage value after six years of use. The asset will generate $300,000 in annual revenues and will require $100,000 in annual labor costs and $50,000 in annual materials costs.

  What is the value of the over simplified multiplier

where C represents consumption, DI represents disposable income, I represents investment, G represents government purchases, T represents net taxes, Y represents real GDP, X represents exports, and IM represents imports.

  What is the break even price

what is the break even price What is the shut-down price What if cable was currently $70.00 and was lowered to $40.0, how large is the price effect How large would be the quantity effect be What is the profit maximizing qunatity and price for cabl..

  In what ways does our trade model require further extension

In what ways does our trade model require further extension?

  Calculate the annual total cost of ownership

Calculate the annual total cost of ownership. Which car do you prefer to buy if DN alternative does not exist? Find the value of x (x being the miles driven for each car per year), so that the total ownership costs are the same.

  How much did this basket with 6 gallons of milk

Last year, Maria's income was $1,800. Milk cost $1 per gallon. Bread, which is very expensive where Maria lives, cost $3 per loaf. This year, her income is $3,600. The price of milk increased to $2 per gallon, and the price of bread increased to $..

  Find the down payment that you have to pay the transaction

You can afford a monthly payment of $300 for 2 years only. You want to buy a car that costs $9000. Find the down payment that you have to pay to complete this transaction, if the financial charge (interest) is 9% per year.

  How many tickets would the team be able to sell

If the demand curve for the Kansas City Chiefs' tickets was Q= 500,000 - 200p and their marginal cost=0, then,a. How many tickets would the team be able to sell (ignoring capacity constraints) if it behaved as if it were in a competitive market? M..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd