An undervalued exchange rate is an exchange rate:
A. that equals the number of units of a foreign currency over the number of units of domestic currency.
B. that has an officially fixed value greater than its fundamental value.
C. that has an officially fixed value less than its fundamental value.
D. at which the quantities of currencies demanded and supplied in the foreign exchange market are equal.
Answer: C
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If an increase in income leads to a decrease in the demand for popcorn, then popcorn is
A) a necessity. B) a normal good. C) an inferior good. D) a neutral good.
All of the following are resources EXCEPT
A) doctors because they perform services. B) the land the Statue of Liberty sits on. C) the computer in the student computer lab. D) money.
Which of the following stands true for factors that affect changes in productivity across countries and over time?
a. It is more difficult to measure changes in the quality of goods than changes in the quality of services. b. As energy prices go up, energy-efficient capital goods become obsolete. c. It is believed that productivity grows more slowly in manufacturing industries than in services, because of the less labor-intensive nature of manufacturing industries. d. The key to efficient production is the allocation of resources to their best use. e. The greater the productivity, the more efficient the allocation of resources, and the less developed a country's financial market would be.
A point on the production possibilities curve represents a combination of goods that is
a. inefficient. b. efficient. c. unattainable. d. attainable.