Under a flexible exchange rate system, exchange rates are determined by free markets.
Answer the following statement true (T) or false (F)
True
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In the above figure, the average fixed cost curve is curve
A) A. B) B. C) C. D) D.
Refer to Figure 8.5. If the actual wage in this economy is represented by w2, employment in this economy is represented by
A) L1. B) L2. C) L3. D) 0.
If the market price is $4 and a perfectly competitive firm is producing 500 units and the marginal cost to produce the 500th unit is $5.13, which of the following is true?
A) The firm is maximizing profit. B) The firm should increase production to maximize profit. C) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is positive. D) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is negative.
The exchange rate changed from € 2.5/ $ to € 2.0/ $. Therefore:
a. The euro appreciated by 25% and the dollar depreciated by 20%. b. The euro depreciated by 25% and the dollar appreciated by 20%. c. The euro appreciated by 20% and the dollar depreciated by 25%. d. The euro depreciated by 20% and the dollar appreciated by 25%. e. The euro appreciated by 20% and the dollar depreciated by 20%.