How does the use of adjustable-rate mortgages affect interest-rate risk?
A) It reduces the interest-rate risk of lenders.
B) It reduces the interest-rte risk of borrowers.
C) It reduces the interest-rate risk of both lenders and borrowers.
D) It increases the interest-rate risk of both lenders and borrowers.
A
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Using the information in the table shown, the average revenue for 5 units is:
This table represents the revenues faced by a monopolist.
A. $600
B. $300
C. $3,000
D. $120
Owners of a firm want the managers to make business decisions which will
A. maximize the value of the firm. B. maximize expected profit in each period of operation. C. maximize the market share of the firm. D. both a and b are correct when revenue and cost conditions in one time period are independent of revenues and costs in future time periods.
Economists use the phrase "network externalities" to describe the role technology plays in explaining why consumers buy products that other consumers are already buying.
a. true b. false
Medicare and Social Security are similar in the following respects, except:
A. They are both "pay-as-you-go" plans B. Their trust funds are both projected to be depleted within the next 30 years C. Contributions are collected from both employers and employees D. They are both intended to benefit older current workers