Table 13-2 -Refer to Table 13-2. Which Currency(ies) Is(are) More Valuable Than

question 377

Multiple Choice

Table 13-2

-Refer to Table 13-2. Which currency(ies) is(are) more valuable than predicted by the doctrine of purchasing-power parity?

• A) boloviano and dinar
• B) yen, kroner, and baht
• C) yen and kroner
• D) baht

---

Definitions:

Manufacturing Firms

Companies that use labor, equipment, and raw materials to produce finished goods.

Service Firms

Companies that provide intangible products or services to consumers or other businesses rather than physical goods.

Contribution Margin Ratio

The percentage of each sales dollar that is available to cover the fixed costs and provide an operating income. Also called profit-volume ratio.

Contribution Margin

The income left over after subtracting variable expenses, which is utilized to pay for fixed costs and create earnings.