"Subprime mortgages" refer to
A. mortgages made to borrowers who do not usually qualify for loans.
B. interest rates that are over and above the prime rate to risky borrowers.
C. mortgage brokers making huge commissions on volume.
D. mortgages made to credit-worthy borrowers at low interest rates.
Answer: A
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Which of the following terms refers to an unusually severe, prolonged recession, typically with an unemployment rate that exceeds 20%?
A) Depreciation B) Deflation C) Inflation D) Depression
Which of the following observations is not true?
A. Demand curve of the perfectly competitive firm is perfectly elastic. B. There is only one price for a product in a perfectly competitive market. C. A firm in a perfectly competitive market can sell as much as it wants at market price. D. Demand curve of the perfectly competitive industry is perfectly elastic.
A perfectly elastic supply curve is expressed graphically as a(n):
a. downward sloping line or curve. b. upward sloping line or curve. c. vertical line. d. horizontal line.
In what decade did the U.S. government first decide to intervene in the farm economy?
a. 1950s b. 1930s c. 1970s d. 1960s e. 1980s