If interest rates near zero fail to stimulate borrowing, the economy is in a
A. hyperinflation.
B. housing bubble.
C. money pit.
D. liquidity trap.
Answer: D
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In a competitive industry
a. firms produce a product or service with very close substitutes b. the firms products have a very elastic demand c. the firms have many rivals d. all of the above
Wayne Inc supplies a wide range of electronic products. However, the quality of the company's products is low compared to other companies. The CEO of the company decides to improve quality by reducing the variety of products. The decision of the CEO is based on the concept of _____
a. privatization b. globalization c. economies of scale d. specialization
You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your economic surplus from working as a math tutor instead of going to the movies?
A. $10 B. $2 C. $8 D. $12
In economics, the concept that individuals are motivated by self-interest and respond predictably to opportunities is known as
A) rational behavior. B) altruism. C) normative bias. D) empiricism.