Equilibrium in the foreign exchange market occurs:
a. at the point where the foreign exchange demand and supply curves intersect.
b. at the point where the foreign exchange demand and supply curves reach maximum separation.
c. when two nations' economic leaders agree on the appropriate exchange rate.
d. when two nations' diplomatic leaders agree on an exchange rate that meets both countries' needs.
e. only by chance, if at all, because they change very frequently.
a
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The nation of Exland is considered a less-developed country and has the following characteristics. Which one is not typical of a less-developed country?
a. High illiteracy. b. High unemployment. c. Rapid growth of technology. d. Low growth in technology. e. Rapid population growth.
Because market price always tends back to the minimum average total cost for all identical firms in a perfectly competitive market in the long run, in theory:
A. the supply will remain a constant quantity. B. price will be the same at any quantity. C. the supply curve will be upward sloping. D. the supply curve may be downward sloping.