This graph depicts the demand for a normal good. 
A shift from A to B in the graph shown for a normal good might be caused by:
A. a decrease in income.
B. an increase in income.
C. a decrease in price.
D. an increase in price.
Answer: B
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When mortgage loans are securitized, they are
A) issued to borrowers with flawed credit histories. B) issued to borrowers who fail to document their income. C) bundled together by financial institutions and sold to investors. D) guaranteed by the federal government.
The recent rise in the price of gasoline has caused:
A. automakers to produce more gas-efficient cars. B. automakers to drop the price of gas-efficient vehicles. C. automakers to spend more money marketing bigger vehicles. D. would not affect an automaker's supply decisions.
In regulated industries, the optimal regulation is to set price such that MC=P.
Answer the following statement true (T) or false (F)
Economists assume that the typical person who starts her own business does so with the intention of
a. donating the profits from her business to charity. b. capturing the highest number of sales in her industry. c. maximizing profits. d. minimizing costs.