Why is the demand for foreign currencies known as a derived demand?
The demand for foreign currencies is known as a derived demand, because the demand for a foreign currency derives directly from the demand for foreign goods and services or for foreign investment.
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A firm produces 200 units of a good when it employs 7 workers. The marginal product of the eighth worker is 46 units. If the eighth worker is hired, the firm's total product will increase to:
A) 208 units. B) 228 units. C) 246 units. D) 322 units.
The Balance of Payments always balances
Indicate whether the statement is true or false
One reason that private solutions to externalities do not always work is that
a. government intervention negates the benefits of positive externalities. b. some people benefit from externalities. c. interested parties incur costs in the bargaining process. d. charities are not well organized.
Below, The graph on the left shows the short-run marginal cost curve for a typical firm selling in a perfectly competitive industry. The graph on the right shows current industry demand and supply.
What is the marginal revenue for the FIRM from selling the 250th unit of output?
A. $8 B. $4 C. $10 D. $6 E. zero