Subprime lending gained popularity because of all of the following, except:
A. investing in a home was seen as the safest investment one could make.
B. helping poor to own a home.
C. the value of homes had not fallen for over 60 years.
D. it was meant to encourage those with risky credit to make a safe investment.
Answer: B
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With a natural monopoly,
A) no regulation is necessary because it is a natural monopoly. B) regulation takes the form of forcing competition from new firms. C) regulation takes the form of forcing the company out of business. D) regulation can take the form of average cost pricing to allow coverage of costs. E) regulation takes the form of breaking the company into several competing firms.
Explain the condition where society would be better off when more of a good is produced
What will be an ideal response?
The demand curve facing the monopolistically competitive firm is:
A. flat. B. vertical. C. U-shaped. D. None of these statements is true.
A merger between a maker of household detergents and a fast-food chain would be an example of:
A. a horizontal merger. B. an interlocking directorate. C. a conglomerate merger. D. a tying contract.