A country will have a balance-of- payments surplus when its exchange rate:
A. is undervalued.
B. is flexible.
C. equals the market equilibrium value.
D. is overvalued.
Answer: A
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If there is excess demand in a market, then this suggests that:
A. there is no way to help some people without harming others. B. the market is in equilibrium. C. the market price is above the equilibrium price. D. there is an opportunity for mutually beneficial trades.
One means of enforcing a quota is to require importers to ________.
A. obtain a license B. pay a sales tax C. obtain a sales permit D. pay an import tax
In average cost pricing, the natural monopoly would have to set price equal to
A. average total cost. B. marginal cost. C. average fixed cost. D. average variable cost.
The Average Total Cost curve will be cut by the Marginal Cost curve from below as long as
A. average costs are decreasing. B. marginal costs eventually increase. C. fixed costs are rising. D. marginal costs continually decrease.