Which of the following is not true of Usury laws that set maximum interest rates?
A. They are designed to protect the consumer.
B. They interfere with the market allocation process.
C. They have an effect only if the market rate is higher than the legal maximum.
D. They are analogous to a price floor.
Answer: D
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Roughly what percent of American families lived below the poverty line in 2010?
A) 12% B) 22% C) 32% D) 42% E) 52%
The above figure shows Jane's budget line and two of her indifference curves. When Jane is consuming at her best affordable point, what is her marginal rate of substitution?
A) 2.0 lobster dinners per steak dinner B) 1.0 lobster dinners per steak dinner C) 0.5 lobster dinners per steak dinner D) 0.33 lobster dinners per steak dinner
According to the factor price equalization theorem, if country A is labor abundant, then if country A initiates international trade
A) wages and rents should fall in A. B) rents and rents should rise in A. C) wages should rise and rents should fall in A. D) wages should fall and rents should rise in A.
Because checking accounts are ________ liquid for the depositor than savings accounts, they earn ________ interest rates
A) less; higher B) less; lower C) more; higher D) more; lower