Countries with Surpluses in Their Balance of Payments Frequently Do

question 111

Multiple Choice

Countries with surpluses in their balance of payments frequently do not want to see their currencies ________ because it makes their goods ________ expensive abroad.

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

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Definitions:

Product Quality

The perceived value or characteristics of a product that meet or exceed the expectations of its users.

Franchise Fees

Payments made by franchisees to franchisors, typically in exchange for the right to use the franchisor's business model and branding.

Nonexcludable

describes a good or service that cannot be withheld from individuals who do not pay for it, characteristic of public goods.

Free Riders

Individuals who benefit from resources, goods, or services without paying for them, relying on others to bear the cost.