When the Market Value of the Dollar Falls Relative to Other

question 191

Multiple Choice

When the market value of the dollar falls relative to other currencies around the world,we say that the

• A) dollar has appreciated.
• B) dollar has depreciated.
• C) demand for dollars has decreased.
• D) supply of dollars has decreased.

---

Definitions:

Oligopoly Market

A market structure characterized by a small number of firms that dominate the market, leading to competitive yet interdependent market conditions.

Monopolistically Competitive Market

An economic scenario where numerous companies offer products that are alike but not exactly the same, leading to competition based on aspects other than price.

Monopolistic Market

An economic scenario where only one seller provides a distinctive product or service, facing substantial obstacles that prevent other competitors from entering the market.

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are perfect substitutes.