Mortgage-backed securities are similar to bonds in that the investor who buys one receives
A) federal insurance to cover the value of the security.
B) partial ownership of the company that issued the security.
C) dividend payments.
D) regular interest payments.
Answer: D
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Compared with industrialized economies, most developing countries are poor in the factors of production essential to modern industry: These factors are
A) capital and skilled labor. B) capital and unskilled labor. C) fertile land and unskilled labor. D) fertile land and skilled labor. E) water and capital.
When people alter their preferences when a choice is presented in a certain way, it is called:
a. anchoring b. framing c. the endowment effect d. compartmentalizing
Most economists are against rent control, in part, because it:
a. leads to surpluses b. encourages landlords to build too many apartments c. Discourages tenants from searching for apartments d. encourages landlords to overspend in upkeep and maintenance on apartments e. none of the above
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher