In international finance, hedging indicates:
a. not being able to make a commitment to buy or sell.
b. delaying a purchase of foreign exchange, hoping the price will fall.
c. simultaneously buying several currencies to ensure that at least one will rise in value.
d. avoiding risk of loss by offsetting an obligation to buy a foreign currency by locking in a contract to sell it at the same time.
Ans: d. avoiding risk of loss by offsetting an obligation to buy a foreign currency by locking in a contract to sell it at the same time.
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Suppose the marginal product of the second worker hired by a firm is 3, and the price of the last unit produced is $7 . Which of the following is true of the marginal revenue product of the second worker?
a. It must equal $21. b. It must be less than or equal to $21. c. It must be greater than or equal to $21. d. It equals $21 only if the firm is a price searcher (e.g., monopoly). e. We can conclude nothing about marginal revenue product.
An increase in wages will cause the aggregate supply curve to
a. shift outward. b. shift inward. c. become flatter. d. become steeper.