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The World Bank has set a goal of eliminating extreme poverty by 2045. 

Sam is willing to pay $34 for a pair of blue jeans. Steve is willing to pay $36. Frank is willing to pay $44. Kevin is willing to pay $29. The price that these jeans are exchange in the marketplace for is $28. If Kevin purchases the blue jeans, his consumer surplus is $____ (enter number only). 

The World Bank was formed during WW2 and initially helped fund reconstruction of countries after the war. But when this was over, it turned its attention to development. 

If prices decrease, then consumer surplus and producer surplus will increase. 

Suppose that the USA had an inflation rate of 2% and Mexico had an inflation rate of 3% for this year. Also, assume that the market exchange rate between the two currencies is 19 Pesos=1 USD. What is the RELATIVE PPP exchange rate at the end of this year? –THINK ABOUT WHICH COUNTRY NEEDS TO GO ON TOP!! **You will need your answer for the next question too. 

Quizzes are open note. I can use any notes that I HAVE TAKEN. 

Quick action allowed the financial crisis to be contained to Asia (hence the name Asian financial crisis). 

“Arguing against globalization is like arguing against the laws of gravity”… This was said by Adam Smith, the father of economics as we now teach it. 

Market exchange rates only apply to goods that are traded. They are not influenced by goods that are not traded. That makes it hard to estimate the real cost of bundles in other countries where costs can be dramatically different. 

The central bank of Thailand found itself with a serious problem with their monetary policy. This is because: