Holding other things constant, a depreciation of the US Dollar to the Kenyan Shilling might cause the demand for Shilling to _____________ and the supply for Shilling to __________.
a. Increase; decrease
b. Increase, increase
c. Decrease; Increase
d. Decrease; Decrease
QUESTION 2The three concepts of optimal capacity utilization are:
a. optimal plant size for a given output rate
b. optimal cost of manufacturing
c. optimal plant size
d. optimal output for a given plant size
e. all of these except b
f. all of these except c
QUESTION 3The problem of double marginalization is
a. The retail price being too low due to an exclusion of both manufacturer and retailer markup
b. The retail price being too high due to an inclusion of manufacturer markup
c. The retail price being too high due to an inclusion of both manufacturer and retailer markup
d. The retail price being too high due to an exclusion of retailer markup
QUESTION 4Currency devaluations hurt
a. Consumers but help suppliers
b. Suppliers
c. Suppliers but help consumers
d. None of the above
QUESTION 5Regarding costs, which of the following statements is true?
a. costs can be measured in different ways
b. costs appropriate for financial reporting purposes are appropriate for decision-making purposes
c. the relevant cost in economic decision making is the initial cost
d. sunk costs should always be considered in making operating decisions
e. none of these is true
QUESTION 6US are experiencing a productivity growth. When comparing to other countries with lower productivity growth, we expect to see
a. Its exchange rate appreciating
b. Its exchange rate depreciating
c. It has no effect on the US exchange rate
d. None of the above
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