All of the following are market determinants of exchange rates EXCEPT
A) changes in productivity in one country relative to another.
B) changes in real interest rates in one country relative to another.
C) changes in product preferences between countries.
D) changes in the relative prices of goods and services within a country.
Answer: D
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Suppose that Fernando allocates his lunch money to pizza and Coke. A Coke costs $1 and a slice of pizza costs $1.50 . The marginal utility of the last slice of pizza Fernando ate today was 30, and the marginal utility of his last Coke was 25 . Fernando spent all of his lunch money. From this information, we can conclude that:
a. Fernando allocated his money in a way that maximized his total utility. b. Fernando's total utility would have been higher if he had purchased more Coke and less pizza. c. Fernando's total utility would have been higher if he had purchased more pizza and less Coke. d. Fernando could have increased his total utility by purchasing more Coke but the same quantity of pizza. e. Fernando could have increased his total utility by purchasing more pizza but the same quantity of Coke.
Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when the firm hires 4 workers, the firm produces 50 units of output. If the fixed cost of production is $4, the variable cost per unit of labor is $20, and the marginal product of labor for the fifth unit of labor is 2,
what is the average total cost of production when the firm hires 5 workers? a. $2.00 b. $20.00 c. $20.80 d. $22.80