Grades Are Low in Class and Your Professor Makes Available

question 157

Multiple Choice

Grades are low in class and your professor makes available a 10-point extra credit assignment. Most of the students turn in the assignment. This statement best represents this economic concept:

• A)The real cost of something is what you must give up to get it.
• B)"How much" is a decision at the margin.
• C)People usually exploit opportunities to make themselves better off.
• D)There are gains from trade.

Apply theoretical knowledge of binomial theorem in practical problems.

Understand the concepts of spot and forward exchange rates and their implications on international trade and investment.

Identify factors unique to international investments, including exchange rate risk, political risk, and economic risk.

Calculating exchange rates and understanding the implications of exchange rate movements on international business transactions.