In the early 2000s, lenders began issuing mortgage loans to people who would normally not be qualified to take out loans because they did not meet lending standards. Those borrowers are known as
A. credit risks.
B. weak borrowers.
C. subprime borrowers.
D. alternative borrowers.
Answer: C
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According to your textbook, rent controls on apartments
A) produce fair outcomes. B) create problems of their own. C) tend to promote efficiency. D) do both B and C. E) do none of the above.
The idea that measurement problems could explain the productivity slowdown since 1973 is based on the fact that
A) official output measures make no adjustment for quality. B) output can't be measured. C) capital can't be measured. D) quality improvements aren't fully accounted for in the data.
The aggregate supply and aggregate demand model is used to explain the:
A. overall health of the economy. B. overall effect of large markets within the economy. C. interaction of all sellers and all buyers within a particular market. D. way that unemployment may affect output, but not how price level does.
Which of the following is correct regarding an unregulated natural monopoly?
a. An unregulated natural monopoly will set output where the average cost curve intersects demand, and will set price equal to average cost. b. An unregulated natural monopoly will set output where the marginal cost curve intersects demand, and will set price equal to marginal cost. c. An unregulated natural monopoly will set output where the marginal revenue curve intersects the marginal cost curve, and will set price at the demand curve. d. An unregulated natural monopoly will set output where the average cost curve intersects marginal revenue curve, and will set price at the demand curve.