Older MCQs might not have the typical A, B, C,
D
choices. They
have choices 1, 2, 3, and a combination of them is the answer. Below is the key that maps such
combinations to the answer.
A
1, 2 and 3 are correct
B
1 and 2 only are correct
C
2 and 3 only are correct
D
1 only is correct
Definition of foreign exchange rate. Determination of foreign exchange rate in foreign exchange market: Floating and fixed systems. Causes of foreign exchange rate fluctuations: Including changes in demand for exports and imports, changes in the rate of interest, speculation, and the entry or departure of MNCs. Consequences of foreign exchange rate fluctuations: The effects of foreign exchange rate fluctuations on export and import prices and spending on imports and exports via the PED. The difference between, and the advantages and disadvantages of, a floating foreign exchange rate and a fixed foreign exchange rate system.
Total cost (TC), average total cost (ATC), fixed cost (FC), variable cost (VC), average fixed cost (AFC), average variable cost (AVC). Calculation of TC, ATC, FC, VC, AFC and AVC. Definition, drawing and interpretation of diagrams that show how changes in output affect costs of production. Total revenue (TR) and average revenue (AR). Calculation of TR and AR. The influence of sales on revenue. Survival, social welfare, profit maximisation and growth. Note: marginal cost is not required. Note: marginal revenue is not required.
