If a Currency Increases in Value as a Result of Government

question 96

Multiple Choice

If a currency increases in value as a result of government decree rather than market forces, the process is known as

• A)reflation.
• B)revaluation.
• C)appreciation.
• D)value-added.

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Definitions:

Fixed Cost

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

Market Price

The actual selling price of a good or service in the marketplace at any given time.

Marginal Revenue

The increase in income a business achieves through the sale of one extra unit of a product or service.

Marginal Cost

The extra charge involved in producing an additional unit of a product or service.