What are the three main exchange rate systems, and how do they operate?
What will be an ideal response?
The three main exchange rate systems are the floating exchange rate, the fixed exchange rate, and the managed float. The floating exchange rate is determined solely by equilibrium of demand and supply in the foreign exchange market. The fixed exchange rate exists when the government maintains one fixed rate at which currency can be exchanged. Under a managed float, the exchange rate is mostly determined by demand and supply in the market for foreign exchange, with occasional government intervention.
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The MRTS for isoquants in a fixed-proportion production function is:
A) zero or one. B) always zero. C) always one. D) zero or undefined.
About 18% of the world's population lives in a low income country. Approximately what percentage of pharmaceutical sales are made in low income countries?
A. 20% B. 12% C. 5% D. 1%
Table 1.1 Shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.1 Production Possibilities for Bombers Combination Number of B-1 Bombers Opportunity cost (Foregone Stealth) Number of Stealth Bombers Opportunity cost (Foregone B-1) S0NA10 T1 9 U2 7 V3 4NAThe highest opportunity cost in Table 1.1 for B-1 bombers in terms of Stealth bombers is
A. 0.5 Stealth bomber per B-1 bomber. B. 2 Stealth bombers per B-1 bomber. C. 1 Stealth bomber per B-1 bomber. D. 3 Stealth bombers per B-1 bomber.
If the demand for bacon is relatively elastic, a 10 percent decline in the price of bacon will:
A. decrease the amount demanded by more than 10 percent. B. increase the amount demanded by more than 10 percent. C. decrease the amount demanded by less than 10 percent. D. increase the amount demanded by less than 10 percent.