An Appreciation of a Country's Currency Means

question 34

Multiple Choice

An appreciation of a country's currency means

• A)it takes more units of another country's currency to buy one unit of this currency.
• B)it takes fewer units of another country's currency to buy one unit of this currency.
• C)it takes more units of this currency to buy one unit of the good that country produces.
• D)it takes fewer units of this currency to buy one unit of the good that country produces.
• E)how much its domestic consumers enjoy the goods it produces.

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Definitions:

Profit Rewards

The financial gains that accrue to entrepreneurs or investors as a result of taking a risk in the marketplace.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and no single firm having market control.

Market Structure

The organizational and other characteristics of a market, influencing the level of competition and pricing within the market.

Oligopoly

A market structure in which a few firms sell either a standardized or differentiated product, into which entry is difficult, in which the firm has limited control over product price because of mutual interdependence (except when there is collusion among firms), and in which there is typically nonprice competition.