International businesses like a fixed exchange-rate system because
A) they like large swings in currency values when devaluation or revaluation occur.
B) they profit by speculating on devaluation or revaluation.
C) they can plan better if they know what the exchange rate will be.
D) fixed exchange rates are economically efficient.
C
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The fees paid to a mutual fund manager is called:
a. fund fee. b. service fee. c. load. d. dividend. e. agency fee.
Kate is a personal trainer whose client William pays $80 per hour-long session. William values this service at $100 per hour, while the opportunity cost of Kate's time is $75 per hour. The government places a tax of $10 per hour on personal trainers. After the tax, what is likely to happen in the market for personal training?
a. Kate and William will agree to a new price somewhere between $85 and $100. b. Kate and William will agree to a new price somewhere between $70 and $110. c. Kate will no longer offer personal training services to William because she must charge more than $100 in order to cover her opportunity costs and pay the tax. d. The price will remain at $80, and Kate will pay the $10 tax.