The Figure Below Shows the Demand (D) and Supply (S)

question 4

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-What is a currency board?

• A)A fixed exchange rate that, by law, exchanges domestic currency for a specified foreign currency at a fixed exchange rate.
• B)A floating exchange rate.
• C)A managed floating exchange-rate policy that the government adjusts periodically according to some economic indicator.
• D)A laissez-faire exchange-rate policy.
• E)An interventionist exchange-rate policy.

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Definitions:

Resources

Various means or inputs (such as labor, capital, land) used in the production of goods and services.

Efficiency

The extent to which resources are used in the most productive way possible to achieve maximum output or outcomes.

Opportunity Costs

The cost of an alternative that must be forgone in order to pursue a certain action or the benefits you miss out on when choosing one alternative over another.

Economic Welfare

The overall health and well-being of an economy, often measured by standards of living, availability of goods and services, and income distribution.