In the events of the housing bubble collapsing, once the housing prices stopped increasing refinancing:
A. was no longer an option, and a wave of foreclosures occurred.
B. no longer allowed people to borrow cash on the new value of their home, and spending slowed.
C. became less popular, and people's consumption overall dropped.
D. became more popular, and people's consumption accelerated overall.
A. was no longer an option, and a wave of foreclosures occurred.
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Last year in the United States, the price of snowboards rose by 5 percent and the price rise resulted in a 15 percent increase in the quantity supplied. This outcome is an indication that
A) the supply curve of snowboards shifted rightward. B) the supply of snowboards is price elastic. C) some firms entered into the snowboard industry. D) All of the above answers are correct.
During World War II, a labor shortage emerged in some markets. New recruits into the civilian labor force included
(a) teenage females. (b) married women. (c) retired people 65 years of age or older. (d) all of the above.
For a given pair of production outputs, the degree of economies of scope:
A) is constant across different output levels. B) only increases as the level of output increases. C) may increase or decrease with output. D) will always tend to zero as output becomes very large.
A perfectly competitive firm would be willing to remain in the industry in the long run at zero economic profit because
A. its total revenues would be positive. B. accounting profit would be negative. C. revenue is equal to all costs, including the opportunity cost of capital and labor. D. its fixed costs would prevent it from leaving the industry.