Under a Gold Standard in Which France Defined One Franc

question 102

Multiple Choice

Under a gold standard in which France defined one franc to be worth 1/50^th of an ounce of gold and the U.S.defined one dollar to be worth 1/10^th of an ounce of gold,then

• A)one U.S.dollar would exchange for five French francs.
• B)the French franc is worth only one-tenth as much as the dollar is worth.
• C)the U.S.dollar is valued at one-fifth of the French franC.
• D)one French franc would exchange for ten dollars.
• E)exports would rise in France and decline in the U.S.

Calculate the minimum acceptable price for selling or purchasing products based on relevant costs.

Evaluate the profitability of using existing resources versus obtaining new resources.

Understand the role of sunk costs, opportunity costs, and avoidable costs in financial decision-making.

Determine the optimal product mix in situations of limited resources using contribution margin analysis.

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