Question : Marginal rate of exchange also denotes:
Option 1: Slope of Demand Curve
Option 2: Slope of budget line
Option 3: Slope of IC Curve
Option 4: None of the above
Correct Answer: Slope of budget line
Solution : The slope of the budget line, which is the ratio of the price of good X to the price of good Y, is the marginal rate of exchange. The marginal rate of substitution, on the other hand, is the slope of the indifference curve that measures the units of good y sacrificed to gain one additional unit of good x. Hence correct will be option B.
Question : The market rate of exchange also reveals information about the _____.
Option 1: Slope of PPC
Option 2: Slope Indiiffrecne Curve
Option 3: The slope of budget line
Question : The indifference curve's slope is calculated using:
Option 1: Marginal Rate of Substitution
Option 2: Marginal Opportunity Cost
Option 3: Marginal Rate of Transformation
Option 4: None of these
Question : Managed floating exchange rate is a hybrid of
Option 1: Fixed exchange rate
Option 2: Flexible exchange rate
Option 3: Both A & B
Option 4: None of the above.
Question : Depreciation and appreciation are the part of which exchange rate system?
Option 1: Fixed exchange rate system
Option 2: Flexible exchange rate system
Option 3: Managed floating rate system
Question : Revaluation and devaluation are the part of which exchange rate system?
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