Which One of the Following Statements About Measuring Capacity Is

question 75

Multiple Choice

Which one of the following statements about measuring capacity is best?

• A) The utilization rate is expressed as the ratio of maximum output rate to capacity.
• B) The minimum output rate for a restaurant would be the number of seats.
• C) Peak capacity is the output that a facility can sustain under normal conditions.
• D) A line flow process usually measures its capacity in terms of output rates.

---

Definitions:

Purchasing Power Parity

A theory that states the exchange rates between two currencies are in equilibrium when their purchasing power is the same in both countries.

Foreign Exchange Market

A global marketplace for exchanging national currencies against one another, fundamental for international trade and investment.

Relative PPP

Stands for Relative Purchasing Power Parity, a theory that suggests that in the long term, exchange rates should adjust so that similar goods cost the same in different countries.

UIP

Uncovered Interest Parity, a financial theory stating that the difference in interest rates between two countries will equal the expected change in exchange rates between their currencies.