Related to the Economics in Practice on Page 205: the Price

question 47

Multiple Choice

Related to the Economics in Practice on page 205: The price of hot dogs sold from a cart in New York's Central Park is much higher than the standard price elsewhere in New York. Which of the following, if true, would provide the best explanation for this difference?

• A) Only licensed vendors may sell hot dogs from a cart, and the price of that license is higher for sales in Central Park than it is for sales elsewhere in New York.
• B) The standard price of hot dogs in New York is higher than the standard price of hot dogs in other cities.
• C) In Central Park, prices for hamburgers and other foods are typically higher than they are outside of Central Park.
• D) Almost all hot dog vendors sell essentially the same product: a standard quality-certified hot dog and two varieties of mustard.

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Definitions:

Eurodollar Market

A market for US dollars deposited in banks outside the United States, particularly used for lending and borrowing between banks internationally.

Foreign Banks

Banks that are based in a country different from the country of operation, often providing a range of financial services like deposits, loans, and currency exchange.

Eurobonds

International bonds issued in a currency other than the currency of the country or market in which it is issued.

Denominated

Used to describe the currency in which a financial transaction or investment is stated or valued.