The Canadian dollar （CAD） exchange rate with the Japanese yen （JPY） changes from JPY/CAD 75 to JPY/CAD 78. The CAD has:
A. Depreciated by 3.8%,and the JPY has appreciated by 4.0%.
B. Appreciated by 3.8%,and the JPY has depreciated by 4.0%.
C. Appreciated by 4.0%,and the JPY has depreciated by 3.8%.
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Which of the following statements about the behavior of firms in a perfectly competitive market is least accurate？
A firm experiencing economic losses in the short run will continue to operate if its revenues are greater than its variable costs.
B. A firm that is producing less than the quantity for which marginal cost equals the market price would lose money by increasing production.
C. If firms are earning economic profits in the short run,new firms will enter the market and reduce economic profits to zero in the long run.
Potential real GDP is least likely to increase as a result of an:
A. Improvement in technology.
B. Increase in the money wage rate.
C. Increase in the labor force participation ratio.
Other things equal, which of the following is most likely to decrease a countrys trade deficit？
A. Increase its capital account surplus.
B. Decrease expenditures relative to income.
C. Decrease domestic saving relative to domestic investment.
In which type of regional trade agreement are economic policies conducted independently by the member countries, while labor and capital are free to move among member countries？
A. Free trade area.
B. Common market.
C. Economic union.
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