The exchange rate is a key price that affects international trade flows of goods and services and international financial flows.
Answer the following statement true (T) or false (F)
True
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Which of the following best describes marginal cost?
a. The sum of fixed cost and variable cost b. Total cost divided by the quantity of output produced c. Variable cost divided by the quantity of output produced d. Change in total cost resulting from a one-unit change in output
In 1998 the Russian government defaulted on its bonds. According to the open-economy macroeconomic model, this should have
a. increased Russian interest rates and net exports. b. reduced Russian interest rates and net exports. c. increased Russian interest rates and reduced Russian net exports. d. reduced Russian interest rates and increased Russian net exports.
Quantity DemandedPriceQuantity Supplied52$5073624562724051823542923033In the above market, economists would call a government-set minimum price of $50 a:
A. price ceiling. B. fair price. C. price floor. D. equilibrium price.
Briefly explain why two firms could both be made better off by cooperating, but they fail to cooperate.
What will be an ideal response?