The lower the exchange rate today, ceteris paribus, the
A) greater is the expected profit from buying U.S. dollars today and holding them.
B) smaller is the expected profit from buying U.S. dollars today and holding them.
C) greater is the expected profit from buying foreign currency today and holding it.
D) smaller the quantity of U.S. dollars demanded in the foreign exchange market today.
A
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Large companies with good credit ratings tend to rely on __________ for short-term financing
A) the commercial paper market B) private placements C) finance companies D) equity
Constant returns to scale occur when: a. long-run average total cost decreases with an increase in output
b. long-run average total cost increases with an increase in output. c. long-run average total cost remains constant with an increase in output. d. long-run average variable cost decreases with an increase in output.
Which of the following situations would be examples of price discrimination?
A. United Airlines charges customers who book 14 days ahead a lower price than those who don't. B. Chevron gas stations charges customers 20 cents more per gallon if they choose the premium grade over the regular unleaded. C. The local carwash charges drivers of minivans and large SUVs a $2.00 "large vehicle" surcharge. D. GEICO, an insurance company, charges higher rates to those who received more than one speeding ticket in the last 6 months.
The reason U.S. workers were better paid than foreign workers during the 1950s and 1960s is
A. U.S. workers were better trained and educated. B. U.S. workers worked harder. C. we had more capital (plant and equipment) per worker. D. the U.S. dollar was the world's strongest currency.