In the above figure, the equilibrium exchange rate between U.S. dollars and British pounds is
A) A.
B) B.
C) C.
D) W.
A
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Josh runs a landscaping business in Vermont and decides to hire two people in India to maintain his bookkeeping for him electronically. Josh can pay them much less than he would pay a bookkeeper in the U.S., and the workers enjoy a higher quality of life in India thanks to their jobs with Josh's company. Josh's actions are an example of:
A. foreign portfolio investment. B. foreign direct investment. C. importing. D. exporting.
People are willing to pay more for a diamond than for a bottle of water because
a. the marginal cost of producing an extra diamond far exceeds the marginal cost of producing an extra bottle of water. b. the marginal benefit of an extra diamond far exceeds the marginal benefit of an extra bottle of water. c. producers of diamonds have a much greater ability to manipulate diamond prices than producers of water have to manipulate water prices. d. water prices are held artificially low by governments, since water is necessary for life.
The labor demand curve of a firm
A. will shift to the left if the price of the product the labor is producing falls. B. is perfectly elastic if the firm is selling its product in a purely competitive market. C. reflects a direct relationship between the number of workers hired and the money wage rate. D. is the same as its marginal product curve.
In the short run, the marginal cost of producing the first unit of output is $50, the marginal cost of the second unit of output is $20, and the marginal cost of producing the third unit of output is $16. The firm's total cost of producing three units of output is:
A. $16. B. $48. C. $86. D. cannot be determined from the information provided