The Pound Sterling Floats

question 116

Multiple Choice

The pound sterling floats. If the exchange rate for the pound changes from $1.68 to $1.60, the pound has:

• A) depreciated.
• B) been devalued.
• C) appreciated.
• D) been revalued.

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Definitions:

Shut Down

Cessation of a firm’s operations as output falls to zero.

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in neither profit nor loss.

Marginal Revenue

The extra revenue generated through the sale of an additional unit of a product or service.

Marginal Cost

The additional total cost incurred from manufacturing an additional unit of a product or service.