Everything Else Held Constant,when a Country's Currency Depreciates,its Goods Abroad

question 97

Multiple Choice

Everything else held constant,when a country's currency depreciates,its goods abroad become ________ expensive while foreign goods in that country become ________ expensive.

• A)more;less
• B)more;more
• C)less;less
• D)less;more

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Definitions:

Time and Materials Pricing

A pricing strategy where the customer pays for the time spent on a project and the materials used, commonly used in service and contracting industries.

Variable Costs

Expenses that fluctuate in direct proportion to changes in the level of business activity or production volume, such as raw materials and direct labor.

Machine Hours

A measure of the amount of time a machine is operated, used in allocating manufacturing costs to products.

Sales Mix

The composition of different products or services sold by a company, indicating the proportion each contributes to total sales.