Suppose that you purchase a Korean government bond and the number of won needed to purchase one dollar increases. Your return on the bond:
A. decreases by more than the amount of the dollar's appreciation.
B. decreases by the amount of the dollar's appreciation.
C. increases by the amount of the dollar's appreciation.
D. decreases by less than the amount of the dollar's appreciation.
Answer: B
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In the above figure, if a subsidy is granted that generates an efficient allocation of resources, then the output level will be
A) zero. B) 50 units per week. C) 150 units per week. D) 250 units per week.
Under autarky, consumer surplus is represented by the area
A) above the supply curve and below the equilibrium price. B) above the demand curve and below the supply curve. C) below the demand curve and above the equilibrium price. D) above the supply curve and below the demand curve.
Suppose that Melinda goes to the movies 6 times per month when the price is $14 and 4 times per month when the price is $20. What is the price elasticity of Melinda’s demand curve?
a. 0.02 b. 0.2 c. 1.33 d. 10.0
President Obama is an advocate of free trade, but which of the following actions is contrary to free trade?
A. closing the Cuban prison B. not getting the immigration problem solved. C. imposing a 35% tax on imported tires. D. implementing the stimulus plan.