A Depreciation of a Nation's Currency Shifts

question 10

Multiple Choice

A depreciation of a nation's currency shifts:

• A)down its supply curve of imports in terms of the foreign currency
• B)up its demand curve of imports in terms of the foreign currency
• C)down its demand curve of imports in terms of the foreign currency
• D)down its demand curve of imports in terms of the domestic currency

---

Definitions:

Break-Even Point

The point at which total costs and total revenue are equal, meaning no net gain or loss is incurred from production and sales.

Shutdown Point

The shutdown point is the level of production and price at which a company's revenue only covers its variable costs, and operating at any capacity below this point would cause the firm to incur losses.

Hourly Wages

The sum of money an employee receives for working one hour.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.