Which of the following is not true of derived demand?

A. It derives from the price of output goods.
B. It is a function of marginal physical productivity.
C. It is the marginal revenue product curve.
D. It is not affected by prices of the input factors.


Answer: C

Economics

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A central bank holds foreign exchange reserves for:

A. safekeeping. B. foreign exchange interventions. C. diversification purposes. D. diversification and safekeeping.

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The time gap between a nation's decision to implement a corrective economic policy and the actual results of the policy is known as the:

A) inside lag. B) inside lapse. C) outside lag. D) outside lapse.

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Referring to Figure 18.2, the peso is likely to appreciate if the exchange rate is either ________ or ________ pesos to the dollar.

A. 10; 11 B. 11; 12 C. 12; 13 D. 13; 14

Economics