With a flexible exchange-rate system, what determines the exchange rate between two countries?
(A) Supply and demand.
(B) The day-to-day changes in one currency.
(C) Inflation and interest rates.
(D) The value of gold.
Ans: (A) Supply and demand.
You might also like to view...
What is the approximate cost to a professional basketball team of giving ten free tickets for a particular game to children in an orphanage?
A) Probably nothing if the game is not sold out. B) The face price of the tickets C) The value of the opportunities forgone by putting on the game, divided by the number of seats (times ten) D) We cannot tell unless we know the value the orphans place on attending.
Joanne left her last job, in which she was earning $60,000, in order to form her own consulting business. Her revenues for the first year of consulting were $210,000. During that year, she hired two assistants for $25,000 each and spent $25,000 on office equipment. In addition, she incurred $75,000 in miscellaneous expenses. Her accounting profit that first year was
A) $0. B) $60,000. C) $210,000. D) $50,000.
A perfectly elastic demand:
A. is demonstrated by a vertical demand curve. B. has a price elasticity of -1. C. means consumers are extremely sensitive to a change in price. D. means quantity demanded is unchanged if the price changes by any amount.
The economic argument that it is in society's best economic interest to pay for the education of "someone else's child" is the
A. moral obligation argument. B. positive marginal benefit argument. C. positive externalities argument. D. positive marginal cost argument.