Consider the Pizza Market, with a Downward- Sloping Demand Curve

question 102

Multiple Choice

Consider the pizza market, with a downward- sloping demand curve and an upward- sloping supply curve. Suppose 100 pizzas are purchased at the free- market equilibrium price. The consumer surplus on the 100th pizza is

• A) negative.
• B) zero.
• C) unknown.
• D) positive.
• E) non- negative.

Understand the concept of political risk and how it impacts international business.

Distinguish between direct and indirect foreign exchange quotes.

Realize the relationship between the strength of a currency and its impact on international trade and investment.

Recognize the significance of spot and forward exchange rates in international finance.

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Definitions:

Lithosphere

The rigid outer layer of the Earth, consisting of the crust and the upper mantle, involved in plate tectonics and continental drift.

Biome

A large community of plants and animals that occupies a distinct region defined by its climate, flora, and fauna.

Biotic Potential

The maximum reproductive capacity of an organism under optimum environmental conditions.

Environmental Resistance

Total of factors in the environment that limit the numerical increase of a population in a particular region.