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Question : 21) On the foreign exchange market, an increase in a : 1238291

Economics

 

21) On the foreign exchange market, an increase in a country’s exchange rate

A) decreases the quantity demanded of its currency and leads to a movement up along the demand curve.

B) increases the quantity demanded of its currency and leads to a movement up along the demand curve.

C) increases the quantity demanded of its currency and leads to a movement down along the demand curve.

D) decreases the demand for its currency and shifts the demand curve rightward.

E) decreases the demand for its currency and shifts the demand curve leftward.

22) If the exchange rate rises, then the quantity of dollars demanded ________ because with the higher U.S. exchange rate, U.S. exports ________.

A) increases; increase

B) increases; decrease

C) decreases; increase

D) decreases; decrease

E) does not change; do not change

23) If the current exchange rate is 1.00 euro per dollar and the expected exchange rate at the end of the month rises to 1.20 euros per dollar, then the demand for dollars ________ because people expect holding of dollars to become ________ profitable.

A) increases; more

B) increases; less

C) decreases; more

D) decreases; less

E) does not change; neither more nor less

24) When the exchange rate between the U.S. dollar and the euro changes from 1.30 euros per dollar to 1.00 euro per dollar the dollar has ________ and U.S. goods have become ________ to people in Europe so that quantity of U.S. dollars demanded ________.

A) depreciated; cheaper; increases

B) depreciated; more expensive; decreases

C) depreciated; cheaper; decreases

D) appreciated; more expensive; decreases

E) appreciated; cheaper; increases

25) Which of the following statements about the foreign exchange market is correct?

A) The higher the expected future exchange rate, the smaller is the expected profit from holding dollars and so the greater is the demand for dollars.

B) The lower the expected future exchange rate, the smaller is the expected profit from holding dollars and so the greater is the demand for dollars.

C) The higher the expected future exchange rate, the smaller is the expected profit from holding dollars and so the smaller is the demand for dollars.

D) The higher the expected future exchange rate, the greater is the expected profit from holding dollars and so the greater is the demand for dollars.

E) The lower the expected future exchange rate, the greater is the expected profit from holding dollars and so the greater is the demand for dollars.

26) Which of the following are reasons why U.S. residents supply dollars to the foreign exchange market?

i.to buy U.S. exports

ii.to buy foreign real estate

iii.to buy foreign bonds

A) i only

B) ii only

C) iii only

D) i and iii

E) ii and iii

27) If the exchange rate rises, the quantity of dollars supplied

A) increases, and there is movement up along the supply curve of dollars.

B) increases, and there is movement down along the supply curve.

C) decreases, and there is movement down along the supply curve.

D) does not change.

E) increases with movement down along the supply curve.

28) If the exchange rate falls, the quantity of dollars supplied

A) increases, and there is movement up along the supply curve of dollars.

B) decreases, and there is movement down along the supply curve of dollars.

C) does not change.

D) increases, and there is movement down along the supply curve of dollars.

E) decreases, and there is movement up along the supply curve of dollars.

29) In the foreign exchange market, the

A) quantity of dollars supplied increases as the exchange rate increases and the supply of dollars does not change.

B) quantity of dollars supplied increases as the exchange rate decreases and the supply of dollars does not change.

C) supply of dollars increases as the exchange rate increases and the quantity of dollars supplied does not change.

D) supply of dollars decreases as the exchange rate increases and the quantity of dollars supplied does not change.

E) both the quantity of dollars supplied and the supply of dollars increases as the exchange rate increases.

30) As the exchange rate ________, the quantity supplied of U.S. dollars ________.

A) rises; increases

B) falls; increases

C) falls; remains the same because it is the supply of U.S. dollars decreases so that the supply curve shifts leftward

D) rises; decreases

E) rises; remains the same because it is the supply of U.S. dollars increases so that the supply curve shifts rightward

 

 

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July 1, 2023
    

 

 

51. Speedy Couriers documented the miles driven and total vehicle costs for the past five months as follows:

 

 

Number of miles

Total vehicle costs

 

January -------------

  800

$1,095 

 

February -----------

1,000

1,440

 

March --------------

  750

1,200

 

April ----------------

  900

1,380

 

May -----------------

1,100

1,410

 

 

 

 

Refer to the Speedy Couriers information above. Using the high/low method, what is the cost equation to predict total vehicle costs? A. Y = $52.50 + $1.67xB. Y = $255 + $1.05xC. Y = $285 + $1.725xD. Y = $750 + $.60x

 

52. Speedy Couriers documented the miles driven and total vehicle costs for the past five months as follows:

 

 

Number of miles

Total vehicle costs

 

January -------------

  800

$1,095 

 

February -----------

1,000

1,440

 

March --------------

  750

1,200

 

April ----------------

  900

1,380

 

May -----------------

1,100

1,410

 

 

 

 

Refer to the Speedy Couriers information above. Using the high/low method, if Speedy expects to drive 1,200 miles in June, what will be expected total vehicle costs? A. $1,470.00B. $1,515.00C. $2,056.50D. $1,720.88

 

53. Denver Manufacturing would like to do a better job budgeting for maintenance costs and, consequently, they have prepared a schedule showing maintenance costs and units produced for the past five months as follows:

 

 

Number of

 

 

 

units produced

Total maintenance costs

 

January -------------

5,400

$4,800

 

February -----------

6,600

5,180

 

March --------------

4,900

4,500

 

April ----------------

5,600

4,900

 

May -----------------

6,000

5,490

 

 

 

 

Refer to the Denver Manufacturing information above. Using the high/low method, what is the cost equation to predict total maintenance costs? A. Y = $90 + $.90xB. Y = $2,540 + $.40xC. Y = $1,646 + $.5824xD. Y = $2.50x - $11,320

 

54. Denver Manufacturing would like to do a better job budgeting for maintenance costs and, consequently, they have prepared a schedule showing maintenance costs and units produced for the past five months as follows:

 

 

Number of

 

 

 

units produced

Total maintenance costs

 

January -------------

5,400

$4,800

 

February -----------

6,600

5,180

 

March --------------

4,900

4,500

 

April ----------------

5,600

4,900

 

May -----------------

6,000

5,490

 

 

 

 

Refer to the Denver Manufacturing information above. Using the high/low method, if Denver expects to produce 5,000 units in June, what will be budgeted total maintenance costs? A. $4,590B. $4,558C. $4,540D. $4,363

 

55. In decision-making, which of the following kinds of costs should always be taken into account? A. Fixed costsB. Variable costsC. Relevant costsD. Sunk costs

 

56. In decision-making, which of the following statements is true? A. Variable costs can always be viewed as relevant.B. Fixed costs can always be viewed as not relevant.C. Variable costs may or may not be relevant.D. Fixed costs can always be viewed as relevant.

 

57. In general, when are variable costs not relevant to a decision? A. When they are avoidable.B. When they do not differ among alternatives.C. When they are part of a mixed cost.D. When they are less than fixed costs.

 

58. In general, when are fixed costs relevant to a decision? A. When they are part of a mixed cost.B. When the fixed cost per unit changes as production changes.C. When they are avoidable.D. When they have already occurred in the past.

 

59. Another word for a relevant cost is a(n) ____ cost. A. fixedB. unavoidableC. incrementalD. variable

 

60. University Memorabilia Inc. is a locally run retail shop. The store usually closes at 5:00 pm, but the owners have inquired about the extra costs involved by letting the store stay open until 9:00 pm. The store manager has listed the following monthly expenditures and their related costs: 

Item:

 

 

1.

Manager salary

$40,000 per year

2.

Store rent

$5,000 per month

3.

Sales’ associates wages

$9 per hour

4.

Store utilities

$4 per hour

 

 

 

 

Which of the above cost items would be relevant to the decision about staying open extra hours? A. 1, 2, 3, and 4B. 2, 3, and 4C. 2 and 3D. 3 and 4

 

 

default image
July 1, 2023
    

 

 

51. Speedy Couriers documented the miles driven and total vehicle costs for the past five months as follows:

 

 

Number of miles

Total vehicle costs

 

January -------------

  800

$1,095 

 

February -----------

1,000

1,440

 

March --------------

  750

1,200

 

April ----------------

  900

1,380

 

May -----------------

1,100

1,410

 

 

 

 

Refer to the Speedy Couriers information above. Using the high/low method, what is the cost equation to predict total vehicle costs? A. Y = $52.50 + $1.67xB. Y = $255 + $1.05xC. Y = $285 + $1.725xD. Y = $750 + $.60x

 

52. Speedy Couriers documented the miles driven and total vehicle costs for the past five months as follows:

 

 

Number of miles

Total vehicle costs

 

January -------------

  800

$1,095 

 

February -----------

1,000

1,440

 

March --------------

  750

1,200

 

April ----------------

  900

1,380

 

May -----------------

1,100

1,410

 

 

 

 

Refer to the Speedy Couriers information above. Using the high/low method, if Speedy expects to drive 1,200 miles in June, what will be expected total vehicle costs? A. $1,470.00B. $1,515.00C. $2,056.50D. $1,720.88

 

53. Denver Manufacturing would like to do a better job budgeting for maintenance costs and, consequently, they have prepared a schedule showing maintenance costs and units produced for the past five months as follows:

 

 

Number of

 

 

 

units produced

Total maintenance costs

 

January -------------

5,400

$4,800

 

February -----------

6,600

5,180

 

March --------------

4,900

4,500

 

April ----------------

5,600

4,900

 

May -----------------

6,000

5,490

 

 

 

 

Refer to the Denver Manufacturing information above. Using the high/low method, what is the cost equation to predict total maintenance costs? A. Y = $90 + $.90xB. Y = $2,540 + $.40xC. Y = $1,646 + $.5824xD. Y = $2.50x - $11,320

 

54. Denver Manufacturing would like to do a better job budgeting for maintenance costs and, consequently, they have prepared a schedule showing maintenance costs and units produced for the past five months as follows:

 

 

Number of

 

 

 

units produced

Total maintenance costs

 

January -------------

5,400

$4,800

 

February -----------

6,600

5,180

 

March --------------

4,900

4,500

 

April ----------------

5,600

4,900

 

May -----------------

6,000

5,490

 

 

 

 

Refer to the Denver Manufacturing information above. Using the high/low method, if Denver expects to produce 5,000 units in June, what will be budgeted total maintenance costs? A. $4,590B. $4,558C. $4,540D. $4,363

 

55. In decision-making, which of the following kinds of costs should always be taken into account? A. Fixed costsB. Variable costsC. Relevant costsD. Sunk costs

 

56. In decision-making, which of the following statements is true? A. Variable costs can always be viewed as relevant.B. Fixed costs can always be viewed as not relevant.C. Variable costs may or may not be relevant.D. Fixed costs can always be viewed as relevant.

 

57. In general, when are variable costs not relevant to a decision? A. When they are avoidable.B. When they do not differ among alternatives.C. When they are part of a mixed cost.D. When they are less than fixed costs.

 

58. In general, when are fixed costs relevant to a decision? A. When they are part of a mixed cost.B. When the fixed cost per unit changes as production changes.C. When they are avoidable.D. When they have already occurred in the past.

 

59. Another word for a relevant cost is a(n) ____ cost. A. fixedB. unavoidableC. incrementalD. variable

 

60. University Memorabilia Inc. is a locally run retail shop. The store usually closes at 5:00 pm, but the owners have inquired about the extra costs involved by letting the store stay open until 9:00 pm. The store manager has listed the following monthly expenditures and their related costs: 

Item:

 

 

1.

Manager salary

$40,000 per year

2.

Store rent

$5,000 per month

3.

Sales’ associates wages

$9 per hour

4.

Store utilities

$4 per hour

 

 

 

 

Which of the above cost items would be relevant to the decision about staying open extra hours? A. 1, 2, 3, and 4B. 2, 3, and 4C. 2 and 3D. 3 and 4

 

 

default image
July 1, 2023
    

 

 

51. Speedy Couriers documented the miles driven and total vehicle costs for the past five months as follows:

 

 

Number of miles

Total vehicle costs

 

January -------------

  800

$1,095 

 

February -----------

1,000

1,440

 

March --------------

  750

1,200

 

April ----------------

  900

1,380

 

May -----------------

1,100

1,410

 

 

 

 

Refer to the Speedy Couriers information above. Using the high/low method, what is the cost equation to predict total vehicle costs? A. Y = $52.50 + $1.67xB. Y = $255 + $1.05xC. Y = $285 + $1.725xD. Y = $750 + $.60x

 

52. Speedy Couriers documented the miles driven and total vehicle costs for the past five months as follows:

 

 

Number of miles

Total vehicle costs

 

January -------------

  800

$1,095 

 

February -----------

1,000

1,440

 

March --------------

  750

1,200

 

April ----------------

  900

1,380

 

May -----------------

1,100

1,410

 

 

 

 

Refer to the Speedy Couriers information above. Using the high/low method, if Speedy expects to drive 1,200 miles in June, what will be expected total vehicle costs? A. $1,470.00B. $1,515.00C. $2,056.50D. $1,720.88

 

53. Denver Manufacturing would like to do a better job budgeting for maintenance costs and, consequently, they have prepared a schedule showing maintenance costs and units produced for the past five months as follows:

 

 

Number of

 

 

 

units produced

Total maintenance costs

 

January -------------

5,400

$4,800

 

February -----------

6,600

5,180

 

March --------------

4,900

4,500

 

April ----------------

5,600

4,900

 

May -----------------

6,000

5,490

 

 

 

 

Refer to the Denver Manufacturing information above. Using the high/low method, what is the cost equation to predict total maintenance costs? A. Y = $90 + $.90xB. Y = $2,540 + $.40xC. Y = $1,646 + $.5824xD. Y = $2.50x - $11,320

 

54. Denver Manufacturing would like to do a better job budgeting for maintenance costs and, consequently, they have prepared a schedule showing maintenance costs and units produced for the past five months as follows:

 

 

Number of

 

 

 

units produced

Total maintenance costs

 

January -------------

5,400

$4,800

 

February -----------

6,600

5,180

 

March --------------

4,900

4,500

 

April ----------------

5,600

4,900

 

May -----------------

6,000

5,490

 

 

 

 

Refer to the Denver Manufacturing information above. Using the high/low method, if Denver expects to produce 5,000 units in June, what will be budgeted total maintenance costs? A. $4,590B. $4,558C. $4,540D. $4,363

 

55. In decision-making, which of the following kinds of costs should always be taken into account? A. Fixed costsB. Variable costsC. Relevant costsD. Sunk costs

 

56. In decision-making, which of the following statements is true? A. Variable costs can always be viewed as relevant.B. Fixed costs can always be viewed as not relevant.C. Variable costs may or may not be relevant.D. Fixed costs can always be viewed as relevant.

 

57. In general, when are variable costs not relevant to a decision? A. When they are avoidable.B. When they do not differ among alternatives.C. When they are part of a mixed cost.D. When they are less than fixed costs.

 

58. In general, when are fixed costs relevant to a decision? A. When they are part of a mixed cost.B. When the fixed cost per unit changes as production changes.C. When they are avoidable.D. When they have already occurred in the past.

 

59. Another word for a relevant cost is a(n) ____ cost. A. fixedB. unavoidableC. incrementalD. variable

 

60. University Memorabilia Inc. is a locally run retail shop. The store usually closes at 5:00 pm, but the owners have inquired about the extra costs involved by letting the store stay open until 9:00 pm. The store manager has listed the following monthly expenditures and their related costs: 

Item:

 

 

1.

Manager salary

$40,000 per year

2.

Store rent

$5,000 per month

3.

Sales’ associates wages

$9 per hour

4.

Store utilities

$4 per hour

 

 

 

 

Which of the above cost items would be relevant to the decision about staying open extra hours? A. 1, 2, 3, and 4B. 2, 3, and 4C. 2 and 3D. 3 and 4

 

 

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