Market equilibrium occurs when:
What will be an ideal response?
there is no incentive for prices to change in the market, quantity demanded equals quantity supplied, and the market clears.
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Teaser interest rates refer to
A) the initial rates that are typically below market rate and are offered by lenders to entice the clients to borrow. B) mortgage rates. C) rates charged on all subprime mortgages. D) none of the above.
Most commercial paper is:
A. issued with maturities exceeding one year. B. used exclusively for short-term financing needs. C. issued with maturities between 50 and 75 days. D. issued by foreign companies doing business in the United States.
An increasing-cost industry is associated with:
A. a perfectly elastic long-run supply curve. B. an upsloping long-run supply curve. C. a perfectly inelastic long-run supply curve. D. an upsloping long-run demand curve.
In the market for automobile insurance, adverse selection implies that
A) those who are insured might take greater risks. B) those who are uninsured might take greater risks. C) insured and uninsured alike will take greater risks. D) drivers with greater risks are more likely to buy insurance.