When the Price of Foreign Currency (I

question 146

Multiple Choice

When the price of foreign currency (i.e.,the exchange rate) is below the equilibrium level:

• A) An excess demand for that currency exists in the foreign exchange market
• B) An excess supply of that currency exists in the foreign exchange market
• C) The demand for foreign exchange shifts outward to the right
• D) The demand for foreign exchange shifts backward to the left

Distinguish between private and public ownership of monopolies and their economic implications.

Explain the benefits and costs of antitrust laws.

Describe the impact of regulatory decisions on firm output levels under different pricing rules.

Understand the concept of deadweight loss in monopoly and regulation, and compare it to deadweight loss from taxation.

---

Definitions:

Resource

An economic input used to produce goods and services, such as labor, capital, and natural resources.

Land

In economics, it refers to all natural resources used to produce goods and services, including agricultural and undeveloped land.

Interest Rate

The cost of borrowing money or the reward for saving, usually expressed as a percentage of the principal amount per period.

$100

A monetary denomination or value equivalent to one hundred U.S. dollars.