Briefly describe the process of microlending
What will be an ideal response?
Microlending involves making small loans, often just a few hundred dollars or less, to people attempting to start or expand small businesses. The loans are made by a variety of groups, including pooled savings from a village, international aid agencies, or large financial firms, such as Citigroup, often operating through small local banks.
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Which of the following is NOT a reason for the weak recovery following the 2007-2009 recession?
A) Recessions started by financial crises are almost always severe. B) The decline in the automobile industry appeared to be structural. C) The collapse of the housing market was long lived. D) The recession was caused by a decline in short-run aggregate supply.
You are the Minister of Trade for a small island country with the following annual PPC:
You are negotiating a trade agreement with a neighboring island with the following annual PPC:
If the other island's delegate offers to give you 2 fish for every 1 coconut you give them, you will:
A. accept their offer because you do not have the comparative advantage in fish. B. refuse their offer because the opportunity cost to you of a coconut is less than 2 fish. C. refuse their offer because the opportunity cost to you of a coconut is more than 2 fish. D. accept their offer because you do not have an absolute advantage in fish.
Suppose you used the FV Excel function to determine whether your rate of saving will be sufficient to purchase the $1 million item you want ten years from now. Your savings rate is
A. Too high if the FV calculation yields a number less than $1 million and too low otherwise. B. Too high if the FV calculation yields a number more than $1 million and too low otherwise. C. Too low D. Just right
Refer to the data provided in Table 10.2 below to answer the following question(s).
Table 10.2 
Refer to Table 10.2. The firm currently employs 4 workers at the market wage of $120 per worker per day. If the firm wants to maximize its profits, it should
A. hire fewer workers B. shut down since it is incurring a loss. C. hire more workers. D. make no adjustments as it is already employing the profit-maximizing number of workers.