Without usury laws, banks will
A) charge very high interest rates to all borrowers.
B) charge higher interest rates to riskier borrowers than to safer borrowers.
C) charge very low interest rates to all borrowers.
D) face no demand for loans.
B
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Points inside the PPF are all
A) unaffordable. B) attainable and have some unemployed resources. C) unattainable and have some unemployed resources. D) attainable and have fully employed resources. E) unattainable and have fully employed resources.
According to Ricardian Equivalence, a tax cut will not have a material impact on consumption spending since ________
A) households will simply save the monies received from the tax cut B) the value of the tax multiplier is one C) a tax cut must lead to an increase in prices, which leaves the real value of consumption unchanged D) a decrease in taxes will be balanced, under current federal law, by a government spending increase
The manager of Greene Enterprises, Inc., recently estimated its average variable cost (AVC) function to beAVC = 88 - 0.026Q + 0.000003Q2Greene Enterprises faces total fixed costs (TFC) of $300,000. When Greene's output is 2,000 units, what is total cost (TC)?
A. $396,000 B. $846,000 C. $144,000 D. $444,000 E. $642,000
In a perfectly competitive market, total revenue:
A. is equal to price multiplied by quantity sold. B. varies due to changes in price, since quantity is constant. C. should vary across firms. D. measures how much revenue the firm takes in from all sales less any costs they incur.