A financial market panic that causes US depositors to withdraw their funds from Chinese banks, would cause a(n)________ in the demand of US dollars and a(n) _________in the demand of the Chinese Yuan.
a. Increase; Increase
b. Increase; Decrease
c. Decrease; Increase
d. Decrease; Decrease
QUESTION 2Firms that have high cost of monitoring, choose their employees much more carefully because
a. They are afraid that the employee would be too productive
b. They are more confident that after getting the job, the employee would not shirk
c. They are afraid that without screening, the employee would be more likely to shirk
d. B & C
QUESTION 3All of the following are examples of fixed costs, except
a. Tax accountant fees
b. Package designing fees
c. Insurance
d. Shipping costs
QUESTION 4A financial market panic that causes US depositors to withdraw their funds from Chinese banks, would cause a(n)________ in the demand of US dollars and a(n) _________in the supply of the Chinese Yuan.
a. Increase; Increase
b. Increase; Decrease
c. Decrease; Increase
d. Decrease; Decrease
QUESTION 5Moral hazard would lead to
a. Only risky drivers buying insurance
b. More risky drivers buying more insurance
c. Drivers taking on a lot more risk after buying insurance
d. Drivers becoming a lot more careful after buying insurance
QUESTION 6All the following are examples of variable costs, except
a. Labor costs
b. Cost of raw materials
c. Accounting fees
d. Electricity costs
QUESTION 7Currency devaluations hurt consumers because they make imports ________ expensive
a. Less
b. More
c. All of the above
d. None of the above
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