There Is a Flexible Exchange Rate System and Only Two

question 119

Multiple Choice

There is a flexible exchange rate system and only two countries in the world,the United States and Mexico.An increase in income growth in Mexico relative to income growth in the United States will cause the

• A) dollar to appreciate.
• B) peso to depreciate.
• C) dollar to depreciate.
• D) a and b
• E) There is not enough information to answer the question.

Recognize the impact of globalization and technological pressures on businesses.

Identify various approaches businesses take to respond to external pressures.

Understand the concept of the digital divide and efforts to mitigate it.

Distinguish between societal, market, and technological pressures in a business context.

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Definitions:

Maximizing Utility

The process or goal of obtaining the highest level of satisfaction or benefit from the consumption of goods and services, given constraints like income.

Utility

A measure of satisfaction, usefulness, or value that an individual or society derives from a good or service.

Consuming

The act of using up goods or services either by purchasing or utilizing them.

Maximizing

Seeking to make as large as possible; in economics, often involves actions like profit maximization or utility maximization.