When a currency decreases in value relative to another currency, the currency has
A) declined. B) appreciated. C) accelerated. D) decelerated. E) depreciated.
E
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Define the efficient scale of production. For the situation of a firm in monopolistic competition, discuss its excess capacity
What will be an ideal response?
If, at the current exchange rate between the dollar and the South African rand of 6.92 rand per dollar, the dollar is "undervalued," how do you expect demand and supply in the foreign exchange markets to respond?
A) The supply of the dollar will fall, while the demand for the rand will rise. B) The demand for the dollar will rise, while the supply of the rand will fall. C) The demand for the dollar will fall, while the supply of the rand will rise. D) The demand for the dollar will rise, while the supply of the rand will rise.
What do economists call the highest amount a consumer will pay to purchase a good?
Suppose coffee is sold in a monopolistically competitive market, where coffee is differentiated by coffee shop location. As firms enter in the long run and the price of coffee falls:
A. the market quantity of coffee demanded will increase, but the quantity of coffee supplied by any individual coffee shop declines. B. the market quantity of coffee demanded will decrease as does the quantity supplied from any individual coffee shop. C. the average costs of production decline. D. the profits of individual coffee shops increase.