Producers are affected by exchange rate changes because goods manufactured in a country with a weak currency will be relatively cheap in world markets.
a. true
b. false
a. true
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The recession of 2007-2009 would most likely be represented in a production possibilities frontier graph by
A) a point on the frontier. B) a point inside the frontier. C) a point outside the frontier. D) an intercept on either the vertical or the horizontal axis.
Which of the following is true of perfectly competitive firms? a. It is difficult for entrepreneurs to become suppliers of a product in a perfectly competitive market structure. b. A perfectly competitive firm has a perfectly elastic supply curve
c. In a perfectly competitive market, an individual seller can change his price and it will not alter the output he sells. d. None of the above are true.
During 1979-2005, the mortgage default rate
a. was less than the foreclosure rate. b. soared to more than 5 percent during recessions but declined sharply during economic expansions. c. soared to more than 5 percent during expansions but declined sharply during economic recessions. d. was generally between 1 and 2 percent.
If Pepsi increases its prices which of the following would NOT happen?
A. The demand for Pepsi would drop. B. The quantity demanded of Pepsi would drop. C. The demand for Coke would increase. D. The equilibrium price of Coke would rise.