A bank will charge a higher interest rate the:
A. longer is the length of the loan, and the higher the risk of repayment.
B. longer is the length of the loan, and the lower the risk of repayment.
C. shorter is the length of the loan, and the higher the risk of repayment.
D. shorter is the length of the loan, and the lower the risk of repayment.
A. longer is the length of the loan, and the higher the risk of repayment.
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Using the above figure, CBL is the cost of breaking the law. What is the equilibrium price and quantity if beer is legal?
A) $5 per quart and 300 quarts of beer B) $3 per quart and 500 quarts of beer C) $3 per quart and 100 quarts of beer D) $1 per quart and 300 quarts of beer
A Guatemalan company exchanges quetzal (Guatemalan currency) for dollars and then uses the dollars to purchase construction equipment from a U.S. company. These transactions
a. increase Guatemalan net capital outflow, and increases U.S. net exports. b. increase Guatemalan capital outflow, and decreases U.S. net exports. c. decrease Guatemalan net capital outflow, and increases U.S. net exports. d. decrease Guatemalan net capital outflow, and decreases U.S. net exports.
Opportunity cost is defined as the value or benefit of the
A. equilibrium price. B. next best alternative. C. most valuable item. D. least valuable item.
For a demand curve to be upward sloping, the good would have to be an inferior good, and
A) the income effect would have to be larger than the substitution effect. B) the income effect would have to be smaller than the substitution effect. C) the income effect would have to be equal to the substitution effect. D) the income effect and the substitution effect would have to be nonexistent.