Which Is Not a Serious Disadvantage Associated with Freely Fluctuating

question 2

Multiple Choice

Which is not a serious disadvantage associated with freely fluctuating exchange rates?

• A) Uncertainty which tends to diminish trade
• B) Greater instability in unemployment levels
• C) Longer lags in eliminating balance of payments surpluses or deficits
• D) Swings in the terms of trade related to currency appreciation or depreciation

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Definitions:

Labor-Hour

A measure of work accomplished, recorded, or billed based on the number of hours worked.

Activity-Based Costing

A method of allocating overhead and indirect costs to products or services based on the activities that drive those costs.

Cost Of Serving

The total expenses incurred while delivering a service or product to a customer.

Direct Labor Cost

The expense related to the wages of workers directly involved in the production of goods or services.