If in Late 2016 100 U

question 25

Multiple Choice

If in late 2016 100 U.S. dollars exchanged for 118 euros and in mid-2017 100 U.S. dollars exchanged for 127 euros, then:

• A) the euro appreciated relative to the dollar.
• B) the dollar appreciated relative to the euro.
• C) European goods became more expensive to Americans.
• D) American goods became more expensive to Americans.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually pay.

Marginal Benefit

This is the additional benefit received from the consumption of one more unit of a good or service.

Output Level

Refers to the quantity of goods or services produced by a firm or economy at a given point in time.

Product Markets

Marketplaces where final goods or services are offered to consumers, businesses, and the government.