A System Whereby Exchange Rates Are Market Determined Without Boundaries

question 33

Multiple Choice

A system whereby exchange rates are market determined without boundaries but subject to government intervention is called

• A)a dirty float.
• B)a free float.
• C)the gold standard.
• D)the Bretton Woods era.

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Definitions:

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs, representing the additional gain to entrepreneurs beyond the normal profit rate.

Accounting Profits

The financial gain calculated by subtracting total explicit costs from total revenue, according to standard accounting practices.

Industry Expansion

The growth in production, workforce, or market share within a specific sector of the economy.

Constant-cost Industry

An industry in which the costs of production or the prices of inputs do not change as the industry expands or contracts.