When the Dollar Appreciates, Which of the Following Generally Occurs

question 109

Multiple Choice

When the dollar appreciates, which of the following generally occurs to domestic industries with direct competition in foreign countries?

• A)employment increases.
• B)employment decreases.
• C)employment remains the same.
• D)At first employment decreases; however, as the dollar continues to increase in value, jobs become more available.

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service relative to its market price, representing the economic benefit to consumers.

Demand Curve

A visual depiction that illustrates the correlation between a product's price and the amount consumers want to buy.

Consumer Surplus

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

Total Utility

The total satisfaction or benefit obtained from consuming a given quantity of goods or services.