If the price index rises from 200 to 250, the purchasing power value of the dollar:

All of the following accurately describes China's currency peg EXCEPT

A) pegging against the dollar ensured that Chinese exporters faced stable prices on exports to the U.S. B) some U.S. firms complained that the peg gave Chinese firms an unfair advantage over U.S. firms. C) the Chinese currency was allowed to depreciate moderately in the years preceding the financial crisis. D) many economists argued that the Chinese currency was undervalued.

A profit-maximizing firm will base its supply decisions on its marginal:

a. private cost. b. social cost. c. external cost. d. transactions cost.