The Price of One Currency in Terms Off Another Currency

question 167

Multiple Choice

The price of one currency in terms off another currency is called

• A) foreign reserves.
• B) the foreign exchange rate.
• C) the foreign trade deficit.
• D) the balance of payments.

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Definitions:

Average Variable Cost

The per-unit variable cost, determined by dividing the overall variable expenses by the amount of output generated.

Total Variable Cost

The sum of all costs that vary with output level, including costs of direct materials, direct labor, and other expenses that increase or decrease as production volume changes.

Variable Cost

Costs that change in proportion to the level of output in the production process.

Marginal Product

The marginal product is the additional output produced as a result of using one more unit of a particular input, holding all other inputs constant.