"Exotic" mortgages became popular in part, because they allow someone of
A. modest means to build more equity in their home than a traditional mortgage would allow.
B. means to get into a home they would easily have been able to afford.
C. modest means to build their credit score by proving they could make challenging payments.
D. modest means to get into a home they might otherwise not have been able to afford.
Answer: D
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The United States has net exports of -$350 billion and the private sector balance is -$400 billion. What is the government sector balance?
What will be an ideal response?
Government rules and regulations can, at times,
A) improve the function of property rights. B) limit free-riders. C) reduce negative externalities. D) all of these choices.
Single-payer systems typically apply all of the following practices except one. Which one?
a. Provide a uniform fee schedule for all services. b. Establish global budgets setting caps on spending. c. Create a mechanism to ease pressure on the system when shortages develop, i.e., a safety valve. d. Require government ownership of the medical infrastructure of clinics and hospitals.
Possession of information by one party in a financial transaction but not by the other party is
A. financial intermediation. B. informational hazard. C. symmetric information. D. asymmetric information.