The Figure Given Below Depicts the Foreign Exchange Market for British

question 41

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-Suppose a U.S. importer agrees to pay a Japanese firm 55,000 yen for a shipment of goods. If the agreement is made when the exchange rate is $1 = ¥100, what is the change in the dollar value of the goods if the exchange rate changes to $1 = ¥110, on the payment-due date?

• A)-$50
• B)$550,000
• C)-$550,000
• D)$50
• E)-$55,000

---

Definitions:

Social Loafing

A phenomenon in group settings where individuals reduce their effort because they believe others will pick up the slack.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, especially after group discussions.

Racially Prejudiced

Holding prejudgments or hostile attitudes towards individuals of a different race based on stereotypes and biases.

Groupthink

A psychological phenomenon in which the desire for harmony or conformity within a group results in an irrational or dysfunctional decision-making outcome.