You could borrow $1,000 today from Bank A and repay the loan, with interest, by paying Bank A $1,060 one year from today. Or, you could borrow $1,500 today from Bank B and repay the loan, with interest, by paying Bank B $1,600 one year from today. Which of the following statements is correct?
a. The interest rate on the loan from Bank A is higher than the interest rate on the loan from Bank B.
b. The interest rate on the loan from Bank A is lower than the interest rate on the loan from Bank B.
c. The interest rates on the two loans are the same.
d. There is not enough information to determine which loan has the higher interest rate.
b
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The amount of interest owed on a loan of $100,000 after a year at an interest rate of 3 percent is:
A. $3,000. B. $30,000. C. $103,000. D. $100,300.
Which of the following is not an advantage to an insurance company of insuring a large group of people for health insurance?
A) When all group members pay the premium, the problem of adverse selection is reduced.
B) The characteristics of a large group are likely to reflect those of the entire population.
C) When all group members pay the premium, the problem of moral hazard is reduced.
D) It is easier to accurately predict the number of claims for a group than for an individual.
U.S. job losses cited by anti-trade critics
A. are mostly a short-term problem in isolated industries. B. are mostly due to poor training by U.S. firms. C. affect only capital-intensive U.S. industries. D. are non-existent.
Refer to the following graph.
The point on the graph corresponding to the socially optimal output per year and the price sellers must receive to make that amount available is shown by point:
A. H. B. K. C. G. D. I.