If lenders think that a particular borrower might default, they will demand a:
A. higher interest rate to make it worth taking that risk.
B. lower interest rate to make it worth taking that risk.
C. higher interest rate to decrease the amount of risk incurred.
D. lower interest rate to decrease the amount of risk incurred.
A. higher interest rate to make it worth taking that risk.
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An asset is liquid if it
A) is of intrinsic value. B) can be exchanged for other goods and services. C) is a store of value. D) can be obtained or disposed of without losing much of its nominal value.
A professional gambler moves from a state where gambling is illegal to a state where gambling is legal. Most of his income was, and continues to be, from gambling. His move
a. raises GDP. b. decreases GDP. c. doesn't change GDP because gambling is never included in GDP. d. doesn't change GDP because in either case his income is included.
Refer to the accompanying table. If the price of Good A is $5 and the price of Good B is $4, then the rational spending rule is satisfied when the consumer purchases ________ units of Good A and ________ units of Good B.UnitsMarginal Utilityof Good AMarginal Utilityof Good B1304022733315244814
A. 4; 2 B. 3; 3 C. 3; 2 D. 1; 3
In most cases, a monopolist practicing price discrimination will earn more economic profit.
Answer the following statement true (T) or false (F)