When Exchange Rates Are Flexible,they Are

question 94

Multiple Choice

When exchange rates are flexible,they are

• A)Determined by proclamation of the monetary authorities of a country.
• B)Determined by the relative levels of gold reserves.
• C)Permitted to vary with changes in supply and demand in the foreign exchange market.
• D)Determined by the provisions of the Bretton Woods agreement.

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Definitions:

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) to make something for consumption.

Labor Demand Curve

A graphical representation showing the relationship between the wages paid to workers and the number of workers that employers are willing to hire.

Marginal Product

The additional output that is produced by using one more unit of a variable input.

Average Product

The output produced per unit of input, calculated by dividing total product by the number of units of input, often used to measure productivity.