Alexio Read SmartHome's Ad in the Local Newspaper Advertising a Home

question 89

Multiple Choice

Alexio read SmartHome's ad in the local newspaper advertising a home communications system for $489. Alexio rushed to the store to buy the system only to be told by the salesperson that the ad was a misprint and the price should have been $849. Alexio gave the salesperson $489 plus sales tax and demanded the system.

• A) The ad is a firm offer by the merchant, and the communication system must be sold for $489.
• B) Alexio can successfully sue SmartHome for the difference if he buys the system for $849.
• C) The store must accept the price stated in the ad, but only if Alexio has a copy of the ad with him.
• D) Alexio is merely making an offer to SmartHome  to buy the communication system for $489 plus sales tax.

Grasp the relationship between shifts in consumer preferences and their impact on currency demand and trade balances.

Understand how exchange rate changes affect the price of imported goods and services.

Learn the principles of the gold standard and its implications for currency valuation.

Grasp the relationship between the price of currencies and their value in foreign exchange.

---

Definitions:

Per Capita GDP

A measure of the economic output of a nation per individual, calculated by dividing the country's gross domestic product by its total population.

Developed Countries

Nations with advanced economies, high standards of living, and well-established infrastructure and government systems.

GNPs Per Person

A metric that measures a country's gross national product divided by its population, indicating the average economic output per person.

Annual Population Growth

Annual Population Growth refers to the rate at which the number of individuals in a population increases in a year, considering factors such as birth rates, death rates, and migration.