Figure 153 Alt Text for Figure 15

question 150

Multiple Choice

Figure 15.3 Alt text for Figure 15.3: In figure 15.3, a graph illustrates the quantity of bahts traded against the exchange rate.
Long description for Figure 15.3: The x-axis is labelled, quantity of bahts traded, with value 180 marked.The y-axis is labelled exchange rate, Canadian dollar against the baht, with value 0.03 marked.A straight line supply curve, S, slopes up from the bottom left corner to the top right corner.A straight line demand curve, D, slopes down from the top left corner to the bottom right corner.Curves S and D intersect at point (160, 0.30) , which is connected to the corresponding x and y-axes values with dotted lines.
-Refer to Figure 15.3.Which of the following is not true?

• A)Canadian imports are cheaper at exchange rates greater than $.03/baht than at the equilibrium exchange rate.
• B)The baht is overvalued at exchange rates greater than $.03/baht.
• C)To achieve an exchange rate greater than $.03/baht, the Bank of Thailand must buy surplus dollars with bahts.
• D)Thai exports to Canada are more expensive at exchange rates greater than $.03/baht than at the equilibrium exchange rate.
• E)If the price of baht is 0.04, the demand for baht will be greater than 160.

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Definitions:

Cost of Goods Manufactured

This refers to the total production cost incurred by a company to manufacture products in a specific period, including materials, labor, and overhead costs.

Raw Materials Used

The total quantity and cost of raw materials employed in the production process during a specific period.

Direct Labour

The wages and expenses directly associated with the production of goods, representing labor that can be directly allocated to products.