If the Dinar Devalues Against the U

question 22

Multiple Choice

If the dinar devalues against the U.S.dollar by 45%,the U.S.dollar will appreciate against the dinar by

• A)45%
• B)82%
• C)55%
• D)32%

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Definitions:

Marginal Cost

Marginal Cost is the increase or decrease in the total cost of production resulting from producing one additional unit of a product.

Variable Cost

Refers to expenses that change in proportion to the production output or activity level of a company.

Fixed Cost

This is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Diminishing Returns

An economic principle stating that adding an additional factor of production results in smaller increases in output after a certain point.