How are the fundamental economic decisions determined in North Korea?
A) The United Nations decides because North Korea is a developing economy.
B) These decisions are made by the country's elders who have had much experience in answering these questions.
C) Individuals, firms, and the government interact in a market to make these economic decisions.
D) The government decides because North Korea is a centrally planned economy.
D
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Carvel advertises a football-shaped ice cream cake for $7; you can buy a second one for only $4 . What do they know about consumer preferences?
a. Consumers would never buy a second ice cream cake. b. Two cakes are worth less to the consumer than one. c. Marginal utility of ice cream cakes diminishes. d. Consumers only value the first cake at $4. e. Consumers value all cakes they eat at $4.
Suppose a U.S. citizen invests $1,000 to purchase a one-year Japanese bond that has an interest yield of 10 percent. If the dollar appreciates 20 percent against the Japanese yen by the maturity date, the dollar value of the proceeds is _____
a. $900 b. $1,100 c. $1,300 d. $1,500 e. $1,200