The exchange rate is the:
A. value of one currency expressed in terms of the goods and services it can buy.
B. value of currency adjusted for inflation.
C. value of one currency expressed in terms of another currency.
D. reciprocal of the currency's real value.
Answer: C
You might also like to view...
Medical research that results in a cure for a serious disease produces positive externalities. What is the impact of this positive externality on economic efficiency?
A) At equilibrium, less than the economically efficient quantity of medical research is produced. B) At equilibrium, more than the economically efficient quantity of medical research is produced. C) A deadweight loss occurs because at equilibrium the marginal social cost of medical research is greater than the marginal social benefit. D) A deadweight loss occurs because at equilibrium the marginal social cost equals the marginal social benefit.
In a two-period model with production, an anticipated future increase in domestic total factor productivity
A) increases domestic output and increases the current account surplus. B) increases domestic output and decreases the current account surplus. C) has no effect on domestic output and increases the current account surplus. D) has no effect on domestic output and decreases the current account surplus.
The Herfindahl index would be 5000 if the only two firms in an industry have equal market shares
a. True b. False
According to the Coase theorem, externalities
A. must usually be internalized by taxation or subsidy. B. can be internalized by the market under certain conditions. C. result when firms fail to maximize profits. D. cannot be internalized if property rights are assigned. E. are not relevant to the issue of market failure.