If you receive a dollar return of 6 percent on a one-year Korean bond that yields 10 percent annually, this means that between the purchase date and the time of maturity:
a. the Korean won (KRW) has depreciated 4 percent against the U.S. dollar.
b. the dollar price of the Korean won (KRW) has risen by 10 percent.
c. the percentage change in the dollar per Korean won exchange rate is 6 percent.
d. the dollar proceeds from the Korean bond are 4 percent higher than the initial dollar investment.
e. the dollar has depreciated 16 percent against the Korean won.
a
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The law of diminishing marginal utility explains why
A. economists think that utility is a fallacy. B. consumers optimize by spending all of their income. C. individual demand curves have a negative slope. D. marginal utility rises as total utility falls.
Each of the following took place in the latter half of the 1990s except
A. a falling rate of inflation. B. a rising stock market. C. an economic boom. D. a rising unemployment rate.
The exercise of market power by suppliers in resource markets tends to:
A. reduce income inequality ensuring that all workers receive fair wages. B. have little impact on the distribution of income. C. increase income inequality by raising incomes of those able to "rig the market." D. increase income inequality but is offset by the exercise of market power in product markets.
Refer to the information provided in Table 22.2 below to answer the question(s) that follow.
Table 22.2
Refer to Table 22.2. The total number of people unemployed is
A. 13 million. B. 15 million. C. 17 million. D. 20 million.