Which of the following was a contributing factor to the rising default and foreclosure rates beginning in the latter half of 2006?
a. the increasing share of 30-year, fixed rate loans as a share of outstanding mortgages
b. the rigid standards of rating agencies, such as Moody's and Standard and Poors, which limited the development of mortgage-backed securities
c. the price-stability policies of the Federal Reserve during 1998-2008
d. the erosion of lending standards during the preceding decade
D
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According to this Application, clear property rights
A) hinder economic growth in developing nations. B) have no impact on the economic growth of developed nations. C) are important for economic growth in developing and developed nations. D) are important for economic growth in developed nations, but not in developing nations.
If there is no Ricardo-Barro effect, a government budget surplus ________ the supply of loanable funds and ________ equilibrium investment
A) decreases; increases B) increases; increases C) increases; decreases D) does not change; does not change E) decreases; decreases
When wages increase, the income effect a. increases the quantity of labor supplied b. increases the supply of labor
c. decreases the quantity of labor supplied d. decreases the supply of labor.
Answer the following questions true (T) or false (F)
1. To maximize profit, a monopolist will produce and sell a quantity such that for the last unit sold, marginal revenue equals marginal cost, and charges a price given by the demand curve at that output level. 2. A monopolist's demand curve is the same as the marginal revenue curve for the product. 3. If a monopolist's price is $50 at the output where marginal revenue equals marginal cost and average total cost is $43, then the incremental profit from the last unit sold is $7.