One reason lenders usually require a lot of information from loan applicants is to avoid:
A. the problem of adverse selection.
B. charges of discrimination in lending.
C. the problems of moral hazard.
D. being harmed by symmetric information.
Answer: A
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This graph depicts a tax being imposed, causing demand to shift from D1 to D2. According to the graph shown, the tax caused:
A. an increase in consumption from Q1 to Q2.
B. a decrease in consumption from Q2 to Q1.
C. a decrease in the price consumers pay from P3 to P1.
D. a decrease in the price the suppliers receive from P3 to P1.
The goal of rent control is to
a. facilitate controlled economic experiments in urban areas. b. help landlords by assuring them a low vacancy rate for their apartments. c. help the poor by assuring them an adequate supply of apartments. d. help the poor by making housing more affordable.
In the balance of payments, all of the following are deficit items EXCEPT
A) imports of merchandise. B) funds placed in foreign depository institutions. C) sales of dollars to foreigners. D) tourism expenditures abroad.
Refer to the above figure. If the government imposes a price ceiling of $60
A. the quantity traded will be 150, and the price will be $60. B. the quantity traded will be 150, and the price will be $40. C. the quantity traded will be 100, and the price will be $60. D. the quantity traded will be 200, and the price will be $60.