When actual inflation is less than expected inflation
A) borrowers lose and lenders gain.
B) borrowers gain and lenders lose.
C) borrowers and lenders both gain.
D) borrowers and lenders both lose.
Answer: A
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A pottery craftsman is debating attending the crafters fair. It costs $50 to set up the booth and $20 in transportation to get his pottery to the fair. He nets $5 for each of his pieces, number of pots he must sell to make going to the fair worth the cost?
a. 10 b. 12 c. 14 d. 16
Which of the following was not a cause of the Great Recession?
a. The relaxation of banking rules and regulations that permitted speculation. b.Government incentives to increase home ownership. c. Government encouragement of creative home-buying strategies. d. Relaxation of bank underwriting standards. e. All of the above were causes of the Great Recession.
Profit per unit is the difference between
A) average revenue and average total cost. B) marginal revenue and marginal cost. C) total revenue and total cost. D) average revenue and marginal cost.
Suppose someone knew that the probability of incurring a $10,000 medical expense was 5%, and the odds of being healthy and incurring no expenses was 95%. If they used that information to compare the expected cost to them ($500) with the $500 premium it would cost to get full coverage and decided to buy the insurance, but only if the price went no higher then economists would say, they are
A. risk-neutral. B. risk-loving. C. risk-averse. D. irrational.