Other Things the Same,the Real Exchange Rate Between American and Chinese

question 1

Multiple Choice

Other things the same,the real exchange rate between American and Chinese goods would be higher if

• A)prices of Chinese goods were higher,or the number of yuan a dollar purchased was higher.
• B)prices of Chinese goods were higher,or the number of yuan a dollar purchased was lower.
• C)prices of Chinese goods were lower,or the number of yuan a dollar purchased was higher.
• D)prices of Chinese goods were lower,or the number of yuan a dollar purchased was lower.

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Definitions:

Units

A standard measure or quantity used in statistics, mathematics, or physics.

Perfect Competition

A market structure characterized by a large number of small firms competing against each other, where no single firm has the market power to influence the price of the product it sells.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the efficiency of resource utilization beyond just financial gain.

Marginal Costs

The cost of producing a subsequent unit of a product or service.