Currency rates of exchange are determined by
A) agreements among governments.
B) the nations with the strongest armies.
C) the demand and supply of the currency.
D) multilateral business agreements.
Ans: C) the demand and supply of the currency.
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The furniture industry consists of many manufacturers producing differentiated products. The market structure that best fits the furniture industry is probably
A) perfect competition. B) monopolistic competition. C) monopoly. D) oligopoly.
Labor productivity is calculated as
A) (real GDP ÷ aggregate hours). B) (real GDP ÷ aggregate hours × number of workers). C) (real GDP ÷ number of workers × ratio of capital per worker). D) (real GDP ÷ technology level). E) (real GDP ÷ aggregate hours × number of workers) × 100.
Depository institutions do all of the following EXCEPT
A) set the required reserve ratio. B) create liquidity. C) pool risks. D) minimize the cost of obtaining funds.
If the elasticity of demand is 3, and the price rises by 15 percent, then
A. The percentage change in quantity demanded will fall as income rises. B. The quantity demanded will rise by 4.5 percent. C. The quantity demanded will fall by 45 percent. D. The quantity demanded will increase by 5 percent.