You are considering purchasing a home. You find one that you like but you realize that you will need to obtain a mortgage for $100,000. The mortgage company presents you with two options: a 15-year mortgage at a 6.0% annual rate and a 30-year mortgage at a 6.5% annual rate. What will be the fixed annual payment for each mortgage?
What will be an ideal response?
Using a financial calculator or a spreadsheet we can determine the 15-year mortgage will require annual payments of $10,296.28; the 30-year mortgage will require annual payments in the amount of $7,657.74.
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Amanda buys a ruby for $330 for which she was willing to pay $340. The minimum acceptable price to the seller, Tony, was $140. Tony experiences a
A. consumer surplus of $670 and Amanda experiences a producer surplus of $470. B. producer surplus of $190 and Amanda experiences a consumer surplus of $10. C. consumer surplus of $10 and Amanda experiences a producer surplus of $190. D. producer surplus of $470 and Amanda experiences a consumer surplus of $670.
Which of the following is true of small changes in productivity growth rates? a. Small changes in productivity growth rates decrease the productivity of workers in the short run compounding the problem. b. The effects of small changes in productivity growth rates are compounded over the years leading to large cumulative effects. c. Small increases in productivity growth rates cause output to
fall. d. The effects of small changes in productivity growth rates are negligible. e. Small decreases in productivity growth rates cause output to increase.
A price ceiling set below the equilibrium price is nonbinding
a. True b. False Indicate whether the statement is true or false
Edward Chamberlin argued that governments should
a. ban the use of brand names. b. not enforce the trademarks that companies use to identify their products. c. vigorously enforce the trademarks that companies use to identify their products. d. tax companies whose products have brand names in proportion to how much consumers recognize their products.