In a world with two products, wheat (W) and coffee (C), nation Alpha produces wheat and nation Beta produces coffee. Nation Alpha prefers an exchange rate of 1W = 2C and nation Beta prefers an exchange rate of 1W = 1C. The exchange rate preferred by nation:
A. Alpha will prevail if world demand for coffee is great relative to its supply
B. Alpha will prevail if world demand for wheat is weak relative to its supply
C. Beta will prevail if world demand for coffee is great relative to its supply
D. Beta will prevail if world demand for wheat is great relative to its supply
C. Beta will prevail if world demand for coffee is great relative to its supply
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Suppose there is a rise in the price level, but no change in the money wage rate. As a result, the quantity of labor demanded
A) increases. B) decreases. C) does not change because there is no change in the real wage rate. D) decreases only if the money wage rate also decreases.
Refer to Scenario 19-1. The value added of CANOES-R-US for each canoe equals
A) $1,200. B) $800. C) $500. D) $400.
What is the type of mechanism that answers the basic economic questions through a decentralized decision making process?
A) market system B) dictatorship C) command and control D) mixed economic system
A concentration ratio refers to the
a. ranking of firms by profitability b. percentage of sales accounted for by the leading firms in an industry c. percentage of sales accounted for by the largest firm in an industry d. ability of a firm to control market price e. percentage of profit accounted for by the largest firm in an industry