Testing procedures required by the US Food and Drug Administration raise the cost and price of drugs. Should we eliminate such requirements in order to ease inflationary pressures? How about the regulation of hot dog content?© BrainMass Inc. brainmass.com October 25, 2018, 5:23 am ad1c9bdddf
Inflation of food and drug prices is a large concern, but so is the health and safety of the individuals buying those goods. Any regulation that the government chooses to implement comes at a price to manufacturers, which also means a higher price for consumers. However, in the case of food and drugs, the high cost of regulation is probably not a bad thing. The argument is due to an information asymmetry between ...
This solution addresses the regulation of hot dog content.
Currency fluctuations: Mexico, UK, income level, inflation rate
27. A large increase in the income level in Mexico along with no growth in the U.S. income level is normally expected to cause (assuming no change in interest rates or other factors) a(n) ______ in Mexican demand for U.S. goods, and the Mexican peso should _______.
a. increase; appreciate
b. increase; depreciate
c. decrease; depreciate
d. decrease; appreciate
28. Assume that the inflation rate becomes much higher in the U.K. relative to the U.S. This will place ____________ pressure on the value of the British pound. Also, assume that interest rates in the U.K. begin to rise relative to interest rates in the U.S. The change in interest rates will place ____________ pressure on the value of the British pound.
a. upward; downward
b. upward; upward
c. downward; upward
d. downward; downward