The Strong Appreciation of the Dollar for the Last Part

question 41

Multiple Choice

The strong appreciation of the dollar for the last part of the 1990s:

• A) was a benefit to all U.S. residents but costly to most foreign producers.
• B) was a benefit to U.S. exporters, but put a severe strain on U.S. Importers.
• C) was welcomed by all U.S. manufacturers.
• D) played a key role in keeping inflation in check even though the economy was growing rapidly.

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Definitions:

Product Differentiation

The method of differentiating a product or service from those available in the market to enhance its appeal to a specific target audience.

Barriers To Entry

Economic, procedural, regulatory, or technological factors that obstruct or restrict the ability of new competitors to enter and operate in a market.

Price Discrimination

A strategy where a provider sells identical or similar goods or services at varied prices in diverse markets.

Efficient Output

The level of production at which a firm or economy can produce goods at the lowest average cost, maximizing resource use without waste.