A hedge is
A. an exchange rate arrangement in which a country pegs the value of its currency to the exchange value.
B. a financial strategy that reduces the change of suffering losses arising from foreign exchange risk.
C. active management of a floating exchange rate on the part of a country's government.
D. the possibility that changes in the value of a nation's currency will result in variations in the market value of assets.
Answer: B
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In the above figure, S1 represents the supply curve which includes private costs, and S2 is the supply curve which includes social costs
If the firm is producing a product that has external costs that the firm does have to pay, what will be the equilibrium price and quantity? A) P1, Q4 B) P2, Q3 C) P4, Q1 D) P3, Q2
Say you own a Mexican place that produces, among other things, Mexican burritos. Your production of burritos is given by the equation Q = 6KL2, where Q is the amount of burritos, K is the amount of capital and L is the amount of labor. How many workers would you need to use in order to minimize the cost of producing 100 burritos when the capital is, K, is 20?
A. 0 B. 2 C. 1 D. 4
Based on the graphs showing price discrimination in movie ticket prices, if the theatre charges $11 per ticket at the evening show, it will ______.
a. maximize profits
b. sell too many tickets
c. sell too few tickets
d. sell no tickets
When U.S. prices are falling relative to those in the rest of the world
A. U.S. imports tend to increase. B. U.S. exports tend to increase. C. U.S exports and U.S. imports both tend to decrease. D. U.S. exports tend to decrease.