When a borrower fails to pay back a loan according to the agreed-upon terms, it is called:
A. credit risk.
B. default.
C. opportunity cost.
D. inflation.
B. default.
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Point out the main differences in job conditions and worker characteristics between the urban formal and informal sectors
What will be an ideal response?
A serious burden of a budget deficit and an increase in the national debt comes on the supply side because large budget deficits
A. discourage consumption and therefore lead to production cutbacks. B. lead to lower interest rates and therefore to excessive optimism by consumers and businesspeople. C. discourage investment and therefore may reduce the growth of the nation’s capital stock. D. discourage foreign investment and therefore limit employment opportunities.
The price paid by buyers in a market will decrease if the government
a. increases a binding price floor in that market. b. increases a binding price ceiling in that market. c. decreases a tax on the good sold in that market. d. All of the above are correct.
Which of the following can occur, when the government imposes a price control on a market?
(a) Excess supply of a good/service. (b) Excess demand for a good/service. (c) Price is not at its equilibrium level. (d) All of the above.