Which of the following is true?
a. Borrowers take bigger risks with their money than they would with other peoples' money
b. Borrowers take bigger risks with other peoples' money than they would with their own
c. Borrowers take big risks on investments regardless of whether it is their own money or not
d. Borrowers should not be investing at all
b
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Refer to Table 16-3. If Julie charges $10 per hour, what is the value of the consumer surplus received by Dawn?
A) $2 B) $10 C) $12 D) $22
The short-run Phillips Curve is _________, and the long-run Phillips Curve is ________.
A. downward sloping; vertical B. downward sloping; horizontal C. upward sloping; vertical D. upward sloping; horizontal
Jennifer has just finished high school and is deciding whether to start working or go to college. She has already been offered a job that pays $35,000 a year. Four years of college will cost $12,000 each year. She would earn an extra $20,000 each year after she graduates for the 45 years she plans on working until she retires. Assume that the interest rate is 8.5%. What is Jennifer's opportunity cost of one year of college?
A. $12,000 B. $17,000 C. $35,000 D. $47,000
Who will lose more customers by raising their price, a firm operating in a perfectly competitive market or a monopolistic competitor? Explain