The increase of sub-prime (including Alt-A) loans as a share of the total from 2001-2005 was an important contributing factor to the economic crisis of 2008 because
a. these loans initially reduced the demand for housing.
b. these loans initially reduced housing prices.
c. the default and foreclosure rates on these loans are several times higher than conventional loans to prime borrowers.
d. the default and foreclosure rates on these loans are considerably lower than conventional loans to prime borrowers.
C
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Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900. You may find it easier to answer the following questions if you fill in the payoff matrix below. 
width="383" />The clear outcome of this game is that: A. neither Joe nor Sam will cut his price. B. Joe will cut his price and Sam won't. C. both Joe and Sam will cut their price. D. Sam will cut his price and Joe won't.
Of the following countries, which is the best example of a mixed economy?
A) Mexico B) Cuba C) North Korea D) China
Refer to the table below. What is Crunchy Fruits total marginal cost to produce 11,750 units?
Crunchy Fruits makes dried fruit snacks. Crunchy Fruits has a multi-plant firm with two production facilities. The table above summarizes the marginal cost of production at the individual plants and the corresponding quantity produced at the individual plants.
A) $2.00
B) $2.25
C) $3.25
D) $1.25
A market for a product for which demanders are willing to pay more than costs of production may not arise because of:
a. high transactions costs. b. strict price controls. c. the inability of producers to gain economies of scale. d. foreign countries dominating a domestic market for a product.