Lenders generally want borrowers to agree to invest prudently, yet once a loan is made borrowers may use the funds in a highly risky fashion. This leads to the problem of
A) deposit insurance. B) investor selection. C) critical mass. D) moral hazard.
D
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Refer to Table 16-2. How many tubes of toothpaste will Neem sell in Middle Fall and at what price?
A) Q = 4 units; P = $5 B) Q = 2 units; P = $7 C) Q = 3 units; P = $6 D) Q = 5 units; P = $4
Interest is the reward offered to households to encourage current consumption because they value future consumption more than current consumption
Indicate whether the statement is true or false
Firm A owns produces both toothpaste and toothbrushes. In order to increase profits the firm must
a. Increase prices for both toothbrushes and toothpaste b. Decrease prices for both toothbrushes and toothpaste c. Increase prices on toothbrushes and increase the price on toothpaste d. Increase prices on toothbrushes but keep the price on toothpaste constant
Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. What is the marginal product of the fifth worker?
A. 40
B. 50
C. 30
D. 200