An Exporter Increasing Its Prices by 5% as a Result

question 61

Multiple Choice

An exporter increasing its prices by 5% as a result of examining the risk of the foreign exchange rate dropping 5% is called:

• A) lagging.
• B) leading.
• C) counter-trade.
• D) mark-up.

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Definitions:

Money Income

The overall sum of financial income earned by a person or family, comprising earnings from employment, salaries, and various other income types.

Indifference Curves

Graphical representations used in microeconomics to show combinations of two goods that provide equal satisfaction and utility to a consumer.

Budget Lines

A graphical representation of all possible combinations of two goods which a consumer can purchase at given prices and within the constraints of his/her income.

Budget Line

A visual representation of all the different combinations of two products that can be bought within a certain budget and price range.