"Consumer sovereignty" means that:
A. buyers can dictate the prices at which goods and services will be offered.
B. advertising is ineffective because consumers already know what they want.
C. buyers control the quality of goods and services through regulatory agencies.
D. buyers determine what will be produced based on their "dollar votes" for the goods and
services offered by sellers.
Answer: D
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A short-run open-economy model with demand shocks can analyze the effect on if output prices and factor prices are sticky.
a. inflation b. real economic activity (real GDP and unemployment) c. long-run variables d. expectations
Russia, Australia, and France have adopted policies to encourage higher birthrates by:
A. Decreasing benefits for single workers B. Penalizing firms with long work hours C. Mandating longer holidays and vacations D. Offering monetary awards for having a child
At higher interest rates, banks will want to hold more reserves.
Answer the following statement true (T) or false (F)
Mortgage insurance protects lenders when a borrower defaults by making up any shortfall needed to repay the loan if the sale of the property doesn't cover the debt Federally regulated lenders must have mortgage insurance on loans where the buyer's down payment is less than 20 per cent of the price. In this example, what signal do potential homeowners give to indicate they are low-risk?
A) indicating high income B) buying an expensive home C) having a large down payment D) buying an inexpensive home