If a product is a necessity and has no substitutes at all, demand for the product is most likely to be:
A. very inelastic.
B. inelastic.
C. unit elastic.
D. elastic.
Answer: A
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The process of combining many different debt instruments like home mortgages into a pool of hundreds of thousands of individual contracts and then selling new financial instruments is called
A) Securitization. B) Leveraging. C) Sub-priming. D) NINJA loaning.
A rational citizen may decide not to vote __________.
a. but is then behaving in an irrational manner even if they are utility maximizing b. if the issues are not interesting to them even though the cost of obtaining information and voting are low c. if the cost of obtaining information about the issues and voting are greater than the chance their one vote will influence the election d. if the benefits of voting are low or non-existent even when the costs of voting are low
The financial market that can raise money for corporations, governments, and households is the:
a. stock market b. bond market. c. loanable funds market. d. credit union market.
In the long run, the output level is determined by
A. aggregate demand. B. aggregate supply. C. household income. D. the government.