Which of the following was not a direct contributor to the booming housing market in the 2000s?
A. People could get mortgages with little or no money down.
B. People were expecting housing prices to keep on rising.
C. Lending standards became loose.
D. Contractionary policy was passed in 2001.
Answer: D
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In a business cycle recession, which of the following occurs?
A) The quantity of investment demanded increases and there is a movement down along the demand for loanable funds curve but no shift in the curve. B) Investment demand increases and the demand for loanable funds curve shifts rightward. C) Investment demand decreases and the demand for loanable funds curve shifts leftward. D) The quantity of investment demanded decreases and there is a rightward shift of the demand for loanable funds curve. E) The quantity of investment demanded decreases increases and there is a movement up along the demand for loanable funds curve but no shift in the curve.
Table 7-2 Plastic (in pounds) 5 6 7 Widgets 14 17 19 ? Table 7-2 contains information on widget production. The average physical product of the seventh pound of plastic is calculated as ____.
A. 9/25 B. 2 C. 25/9 D. 19/7
Suppose housing construction is a price-searcher market with low barriers to entry. Which of the following will be true for this market?
a. The output of the housing construction firms will be produced inefficiently. b. Consumers would be better off if there were fewer firms and less variety in the housing market. c. If firms produced larger quantities but less variety, they could reduce the per-unit costs. d. Consumers do not have to pay for variety in the housing construction market.
The two best known bond rating services are:
A. Standard & Poor's and the Wall Street Journal. B. the Federal Reserve and the U.S. Treasury. C. the Federal Reserve and Moody's Investment Services. D. Standard & Poor's and Moody's Investment Services.