Many developing countries face a balance of payments constraint because:
A. they fail to implement exchange rate policy correctly.
B. they hold too few international reserves.
C. they hold too many international reserves.
D. the IMF forces them to adopt policies that are counterproductive.
Answer: B
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A decrease in the price of a firm's output
A) raises the value of marginal product of each unit of labor. B) shifts the firm's demand for labor curve rightward. C) results in the firm increasing the amount of output it produces. D) None of the above is correct.
An industry consists of all firms that supply output to a particular market
a. True b. False
Some firms have an incentive to advertise because they sell a
a. homogeneous product and charge a price equal to marginal cost. b. homogeneous product and charge a price above marginal cost. c. differentiated product and charge a price equal to marginal cost. d. differentiated product and charge a price above marginal cost.
The ability of a firm to maintain a price above the competitive level without losing all its customers to rival firms is termed as ________
a. competition b. marginal cost pricing c. allocative efficiency d. market power