Suppose the Exchange Rate in the Year 2010 Was 1

question 80

Multiple Choice

Suppose the exchange rate in the year 2010 was 1 euro per dollar, and in 2017 the exchange rate increased to 2 euros per dollar. If the price of a German sweater was 50 euros in both years, the new dollar price in 2017 would be ____ and imports of German sweaters would ____.

• A)$25; increase
• B)$25; decrease
• C)$100; increase
• D)$100; decrease
• E)$50; remain constant

Recognize the normative and informational influences that lead to conformity.

Understand the concept of reciprocity and how it is used in persuasion and compliance.

Explain the concept of reactance and its role in resisting persuasion and control.

Evaluate the ethical considerations in using persuasion and compliance tactics in various contexts.

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Definitions:

Gross Margin

A company's revenue minus its cost of goods sold, divided by revenue, expressed as a percentage, indicating the percentage of revenue that exceeds the cost of goods sold.

Inventory

Inventory comprises the goods and materials a business holds for the purpose of resale or production.

Consolidated Net Income

The total earnings of a corporation, after taxes and expenses, including its subsidiaries, presented in a single financial statement.

Comprehensive Income

A measure of all changes in equity during a period except those resulting from investments by and distributions to owners.