The Efficiency

question 97

Multiple Choice

The efficiency

• A) gain from a fixed exchange rate with the euro is smaller when trade between say, Norway and the euro zone, is extensive than when it is small.
• B) gain from a fixed exchange rate with euro is greater when trade between say, Norway and the euro zone, is extensive than when it is small.
• C) loss from a fixed exchange rate with the euro is smaller when trade between say, Norway and the euro zone, is extensive than when it is small.
• D) gain from a fixed exchange rate with euro is the same as when trade between say, Norway and the euro zone, is extensive than when it is small.
• E) gain from a fixed exchange rate with euro is the same as when trade between say, Norway and the euro zone, is small than when it is small.

---

Definitions:

Direct Materials

Raw materials that are directly traceable to the production of a specific good or service.

Incremental Revenues

Additional revenue that a company generates from selling more units of its products or services.

Special Order

A request for a product or service that is not part of a company’s standard offering, often requiring customization or special handling.

Opportunity Cost

The potential benefits an individual, investor, or business misses out on when choosing one alternative over another.