Which of the Following Make(s) Demand for U

question 136

Multiple Choice

Which of the following make(s) demand for U.S. dollars in the market for foreign-currency exchange higher than otherwise?

• A)a Russian firm wanting to buy equipment from a U.S. manufacturer and a U.S. manufacturer wanting to buy zinc from Canada
• B)a Russian firm wanting to buy equipment from a U.S. manufacturer but not a U.S. manufacturer wanting to buy zinc from Canada
• C)a U.S. manufacturer wanting to buy zinc from Canada but not a Russian firm wanting to buy equipment from a U.S. manufacturer
• D)neither a Russian firm wanting to buy equipment from a U.S. manufacturer nor a U.S. manufacturer wanting to buy zinc from Canada

Identify market failures and government interventions aimed at correcting them.

Calculate and understand consumer surplus and producer surplus from transactions.

Distinguish between different types of market problems such as moral hazard and adverse selection.

Understand the role of government and non-governmental organizations in addressing information asymmetries.

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Definitions:

Periodic Inventory System

An inventory accounting system where the inventory level is updated and the cost of goods sold is calculated at the end of a period, rather than after each sale.

Purchases Account

An account used in accounting to record the total cost of goods bought for resale during an accounting period.

Freight In

The cost of transporting goods into a business, usually included in the cost of inventory.