Which of the following is correct regarding why interest rates differ for different people or businesses, or for things like business loans, mortgage loans, student loans, and car loans?
a. Interest rates tend to be lower for those borrowers judged to be less likely to repay their loan.
b. Interest rates tend to be higher for loans extended for shorter periods of time.
c. The cost of administering one large loan will tend to be higher than the cost of administering the same amount of money extended to borrowers through many small loans.
d. Interest rates tend to be lower for those borrowers judged to be more likely to repay their loan.
d
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Household production is more likely to occur when
a. it requires many specialized resources b. technology makes it more costly than market production c. tax avoidance is undesirable d. less control over the final product is desirable e. the opportunity cost of household work is relatively small
If the price of a good increases from $20 to $25 and the quantity demanded declines from 15 to 10 units of the good, the price elasticity of demand is 5
a. True b. False
After the United States dropped an atomic bomb on Japan, what do you expect happened to the yen?
a. The yen appreciated. b. The yen was unaffected. c. The yen depreciated. d. There is no way to predict the effect on the yen.
A monopoly firm operating with no trade will produce the profit-maximizing quantity where:
a. the firm's MC = MR, where MR is declining and below price. b. MR begins to increase and MC begins to decrease. c. P = MC. d. the firm's MC = MR, where MR is declining and equal to price.