Under a fixed exchange-rate system, a large fall in the market price (the exchange rate value) of a currency is called a(n) ________ of that currency.
A. revaluation
B. depreciation
C. devaluation
D. appreciation
Answer: C
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All of the following observations concerning the elasticity formula are true except
A. the changes with which it deals is measured as a percentage change. B. each of the percentage changes is calculated in terms of the average values. C. the calculation considers both positive and negative signs. D. each percentage change is taken as an “absolute value.”
If a firm produces 20 units of output and incurs a total cost of $1,000 and a variable cost is $700, calculate the firm's average fixed cost of production if it expands output to 25 units
A) $300 B) $15 C) $12 D) It is impossible to determine without additional information.
Most people on welfare
a. are not U.S. citizens b. are poorly educated and have few job skills c. do not qualify for food stamps, child care, or Medicaid d. have jobs e. are below the age of 16
If the real exchange rate for the dollar is below the equilibrium level, the quantity of dollars supplied in the market for foreign-currency exchange is
a. less than the quantity demanded and the dollar will appreciate. b. less than the quantity demanded and the dollar will depreciate. c. greater than the quantity demanded and the dollar will appreciate. d. greater than the quantity demanded and the dollar will depreciate.