Partially-flexible exchange rates:
A. produce fewer exchange rate changes in general than fixed exchange rates.
B. provide governments with a more independent monetary policy than flexible exchange rates.
C. mix market forces with government intervention in a way that permits the exchange rate to respond to long-term balance of payments problems.
D. mix market forces with government intervention in a way that allows exchange rates to respond to speculative pressures.
Answer: C
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Suppose the local newspaper hires students to fold and bag newspapers for delivery and pays them $20 per shift. Five students can fold and bag 300 newspapers per shift. The fourth student added 50 newspapers to total output
The cost of the capital the firm uses is fixed at $50 per shift. a. Is the newspaper operating in the long run or short run? Why? b. What is the average product of 5 students? c. Calculate the total fixed cost, total variable cost, and total costs of folding and bagging 300 newspapers. d. Calculate the average fixed cost, average variable cost, and average total costs of folding and bagging 300 newspapers. e. What is the marginal cost of one of the 50 newspapers folded and bagged by the fourth student?
If a firm shuts down in the short run, then its:
A. profit will equal zero. B. total revenue and total cost will fall to zero. C. economic loss will equal its fixed costs. D. economic loss will equal its variable costs.
The following are common errors students make when discussing supply and demand. What is the mistake in each? a. At equilibrium, demand equals supply. b. The quantity of demand is greater than the quantity of supply. c. They move along the line from both ends to an equilibrium in the middle. d. The increase in demand causes an increase in supply.
What will be an ideal response?
The above table gives the demand and supply schedules for cat food. If the price is $1
00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?