Based on the case study, "Exchange Rates, Auto Prices, and Currency Wars," explain why exchange rates are of critical importance to firms in the automobile industry, and how Japan has benefited from changes in the value of the Yen
What will be an ideal response?
See the discussion at the beginning of the chapter and in the case. Japan experienced a 15% drop in the value of the yen relative to the U.S. dollar in 2013. This increased Japanese exports of autos while reducing imports from the U.S.
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Market demand curves are obtained by
A) observing the behavior of an individual consumer in a market. B) observing the prices and quantities sold in a market over time and plotting those price-quantity combinations in a graph. C) averaging the quantities every consumer is willing to buy at each different price. D) summing the quantities every consumer is willing to buy at each different price. E) determining the price each consumer is willing to pay for the good and summing those prices across all consumers.
In the economic way of thing, speculation could be effectively abolished if society could abolish
A) money. B) greed. C) profit seeking. D) private property rights. E) uncertainty.