ECO 561 Course Great Wisdom / tutorialrank.com ECO 561 Course Great Wisdom / tutorialrank.com | Page 7

C. The peso should depreciate.
D. The dollar will be revalued.
29) A rise in the domestic interest rate leads to capital
A. outflows and exchange rate appreciation
B. outflows and exchange rate depreciation
C. inflows and exchange rate depreciation
D. inflows and exchange rate appreciation
30) A firm under monopolistic competition will earn
A. a positive economic profit as it has some monopoly power
B. zero economic profit as it sets P = MC
C. zero economic profit as its P = ATC
D. a positive economic profit as it sets MC = MR
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ECO 561 Final Exam Guide (UOP Course)
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1) In a market economy the distribution of output will be determined
primarily by:
A. a social consensus as to what distribution of income is most
equitable. B.
consumer needs and preferences. C. the quantities and prices of the
resources