A depreciation is:
A. a decrease in the value of currency.
B. a decrease in the trade deficit.
C. an increase in the trade surplus.
D. an increase in the value of currency.
Answer: A
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In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part-time workers would prefer full-time work. What is the unemployment rate?
A) 23.2 percent B) 6.7 percent C) 8 percent D) 25 percent
Under a fixed exchange rate regime, if a country has an overvalued exchange rate, then its central bank's attempt to keep its currency from ________ will result in a ________ of international reserves
A) depreciating; gain B) depreciating; loss C) appreciating; gain D) appreciating; loss
In the problem of double marginalization, the resulting price is ______than if the manufacturer and the retailer were to merge
a. Higher b. Lower c. The same d. None of the above
In order to maximize profit, a firm that produces its output in two plants will allocate total output between the two plants so that
A. marginal cost for the firm is equal to the sum of the plants' marginal revenue. B. marginal cost is equal for the two plants. C. marginal revenue is equal for the two plants. D. both a and b E. all of the above