A depreciation of a nation's currency is
A. the increase in the exchange value of one nation's currency in terms of an other nation.
B. the decrease in the exchange value of one nation's currency in terms of another nation.
C. a situation in which exchange rates are allowed to fluctuate in the open market in response to changes in supply and demand.
D. a nation in which households, firms, and governments buy and sell national currencies.
Answer: B
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Screening is
a. actions by the informed party to reveal her true risks b. actions by the informed party to conceal her true risks c. actions by the uninformed party to uncover the true risks d. actions by the uninformed party to conceal the true risks
In the long run when average total cost does not depend on the quantity of output, this is called:
A. economies of scale. B. diseconomies of scale. C. constant economies to scale. D. minimum average total cost.
An increase in the nominal interest rate would
a. encourage people to hold smaller money balances. b. encourage people to hold larger money balances. c. force the Fed to reduce the money supply. d. cause the real interest rate to decline.
If a firm is operating on the production function, then workers:
A. are usually putting forth minimal effort. B. may not be putting forth maximal effort. C. are usually putting forth average effort. D. must be putting forth maximal effort.