Uncoordinated decisions in perfect competition lead to mass confusion and inefficiency

a. True
b. False
Indicate whether the statement is true or false


False

Economics

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Suppose an individual has $45,000 in annual income and considering a home that they intend to finance with a $150,000 mortgage at 4% APR 30-year fixed rate loan, the real estate taxes and insurance are $2,000 per year, auto payments are $350/month, and student loans payments are $400/month.

(1) Calculate the two qualification ratios. (2) Would this individual qualify for this loan using a standard 28/36 ratio criteria? Show all work for credit.

Economics

In states where the government runs liquor stores, the monopoly results from

A) economies of scale. B) legal restrictions. C) control of an essential resource. D) patents. E) public fear.

Economics

Over twenty years ago the city of Washington D.C. was facing a budgetary shortfall. In a plan to increase tax revenue the mayor and city council agreed to raise the excise tax on gasoline

Typically for goods like gasoline which are price inelastic this should have led to an increase in tax revenue. However, just the opposite happened – tax revenue plummeted! What could explain this seemingly paradoxical result?

Economics

When a demand curve shifts, both the equilibrium price and quantity traded will change in the same direction as a result

a. True b. False Indicate whether the statement is true or false

Economics