When the Value of the Dollar Declines in Relation to Other

question 77

Multiple Choice

When the value of the dollar declines in relation to other currencies, it benefits U.S. marketers who

• A)export goods to other countries.
• B)import goods from other countries.
• C)engage in countertrade.
• D)enforce import quotas.
• E)outsource labor.

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Definitions:

Diminishing Marginal Utility

The principle that as a person consumes more of a product, there is a decline in the additional satisfaction or utility that person derives from consuming one more unit of the product.

Total Utility

The total satisfaction received by a consumer from consuming a particular quantity of goods or services.

Nth Unit

A term referring to the last or latest unit produced or consumed, often used in economics to analyze marginal costs or benefits.

Diminishing Marginal Utility

A principle stating that as a person consumes more of a good, the additional satisfaction gained from consuming an additional unit decreases.