The effective exchange rate:
a. Is a measure of the weighted-average value of a nation's currency in terms of a basket of other currencies.
b. Is needed to translate prices of one currency into prices of another currency.
c. Reflects the price of one currency in terms of another currency.
d. Takes historic inflation rates into account.
.A
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If a firm increases output when MR < MC, then:
a. profit will equal zero. b. profit will increase. c. profit will decrease. d. profit will remain the same. e. the firm is minimizing losses.
Who does the government borrow from?
What will be an ideal response?
The price of a piece of pizza is $1 and the price of a movie is $4 and the consumer has $10. A consumer has purchased 2 pieces of pizza and 2 movies, receiving 25 units of utility for the second pizza and 100 units of utility for the second movie. The
set of goods A) is an optimum since the entire income is spent and the marginal utility per dollar spent is the same for the last unit of each good. B) is an optimum since the entire income is spent and total utility is minimized. C) is not an optimum because the marginal utility per dollar spent is greater for pizza than for movies. D) is not an optimum because the consumer has not spent all of his money.
An international agreement established in 1947 to further world trade by reducing barriers and tariffs is the
A) World Trade Organization. B) European Union. C) General Agreement on Tariffs and Trade. D) North American Free Trade Agreement.