Assume that the yuan-dollar nominal exchange rate at the beginning of 2012 was 4 yuan per dollar and at the beginning of 2013 was 6 yuan per dollar
Given this information, identify the currency that appreciated and the currency that depreciated over 2012.
At the beginning of 2012, one dollar could buy 4 yuan, while at the beginning of 2013, one dollar could buy 6 yuan. Hence, over 2012, the dollar appreciated and the yuan depreciated.
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Single-owner proprietorships often unintentionally exaggerate their profits because they
A) forget their explicit losses. B) look at after-tax instead of pre-tax costs. C) pay their bills late and therefore incur large interest charges. D) neglect to consider the opportunity cost of the owner's labor.
Which of the following defines the "store of value" function of money?
a. A common measurement of the relative value of different goods and services. b. The ability of money to hold value over time. c. That the materials used to manufacture money are of medium grade or quality, so that people will not hoard money for its commodity value. d. That money is widely accepted in exchange for goods and services.
If the demand for tennis shoes increases and a firm's supply curve is upward sloping, then:
A. producer surplus decreases. B. producer surplus does not change. C. producer surplus increases. D. producer surplus may either increase or decrease.
Foreign direct investment implies that the investor obtains ________ share in a foreign company's ownership.
A. less than 10 percent B. less than 1 percent C. less than 5 percent D. none of these