Springfield Co

question 32

Multiple Choice

Springfield Co., based in the U.S., has a cost from orders of foreign material that exceeds its foreign revenue. All foreign transactions are denominated in the foreign currency of concern. This firm would ____ a stronger dollar and would ____ a weaker dollar.

• A) benefit from; be unaffected by
• B) benefit from; be adversely affected by
• C) be unaffected by; be adversely affected by
• D) be unaffected by; benefit from
• E) benefit from; benefit from

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Definitions:

Property Rights

The ability of an individual to own and exercise control over scarce resources.

World Growth Rates

The rate at which the economic output of the world or specific countries increases over a given period of time.

Population

The entire group of individuals living in a particular area or country, or the total number of people within a specified demographic group.

Private Good

A type of good that is both excludable and rival in consumption, meaning access to the good can be limited by a seller and its use by one person diminishes the availability to others.