Differentiate between the process of defending an undervalued currency and an overvalued currency?
What will be an ideal response?
If a currency is undervalued against a foreign currency, the quantity supplied of the foreign currency exceeds the quantity demanded of the foreign currency. Hence, to defend the currency, the domestic government has to buy the foreign currency and sell the domestic currency. On the other hand, if a currency is overvalued against a foreign currency, the quantity demanded of the foreign currency exceeds the quantity supplied of the foreign currency. Hence, to defend the currency, the domestic government has to sell the foreign currency and buy the domestic currency.
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For any monopolist with a positive marginal cost of production, its demand curve at its profit maximizing level: a. would be elastic
b. would be unit elastic. c. would be inelastic. d. could be either elastic or inelastic.
Life expectancy at birth for the world rose from 24 years to 26 years between 1000 and 1820, but by 2003, life expectancy had risen to
What will be an ideal response?
When a monopolist sells two units of output its total revenue is $150. When a monopolist sells three units of output its total revenue, is $210. When the monopolist sells three units of output, the price per unit is
A. $50. B. $60. C. $70. D. $75.
If a chair can be sold for $20 and it takes a worker two hours to make a chair, the marginal revenue product of this worker is
A. $2 per hour. B. $20 per hour. C. $10 per hour. D. $5 per hour.