Which statement is true?
A. Usury laws enable banks to charge higher credit card interest than the price mechanism would allow.
B. Usury laws prevent banks from charging higher credit card interest rates that the price mechanism would allow.
C. Usury laws have never had any effect on how much interest is charged.
D. None of the statements is true.
B. Usury laws prevent banks from charging higher credit card interest rates that the price mechanism would allow.
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Without warranties, used car buyers can assume that all used cars are "lemons" because of
A) moral hazard. B) moral dilemma. C) adverse selection. D) adverse reaction.
In less-developed countries with rapid population growth,
a. the standard of living will always rise because population is the key to rising living standards b. the standard of living will always fall c. the standard of living will always remain constant d. the standard of living will fall if population grows faster than output e. will be independent of population growth due to foreign aid payments by rich countries
Choose the letter below that best represents the type of shift that would occur in the following situation in the United States: Between 1995 and 2000, the stock market's value increased significantly, adding billions of dollars to the wealth of U.S. households and businesses. (See Figure 8.6.)
A. A. B. B. C. C. D. D.
Health care costs have greatly increased in recent years in the United States. This fact alone does not establish an overallocation of resources to health care because:
A. the benefits of health care have also greatly increased in recent years. B. rising medical care prices have inflated health care costs. C. the marginal cost of health care exceeds the average total cost of health care. D. negative externalities sometimes result from additional health care spending.