Why was so much of the "boom" of the 2000s concentrated in the housing and real estate sectors?
A) The Fed attempted to engineer an increase not only in real GDP, but in particular further the expansion of those sectors.
B) The Community Reinvestment Act (CRA) called for banks to offer subprime loans to at-risk customers.
C) People were encouraged to "flip" houses because the low interest and rate and easy lending practices made it appear profitable to do so.
D) For all of the above reasons.
D
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A firm has to choose between projects X and Y. Project X's internal rate of return is positive. If the cash flow of project Y is discounted at project X's internal rate of return, this firm will
A) choose project X if the net present value of project Y is positive. B) choose project X if the net present value of project Y is negative. C) choose project Y if the net present value of project Y is positive. D) choose project X regardless of the net present value of project Y.
In 2009 __________ agreed to pay $2.3 billion to settle civil and criminal allegations that it had illegally marketed its painkiller, Bextra.
Fill in the blank(s) with the appropriate word(s).
The U.S. Internet search market:
A. is best characterized by pure competition. B. is dominated by Google, which controls about 70 percent of the market. C. has a few prominent firms that each possesses a relatively equal market share. D. has no barriers to entry.
In long-run monopolistically competitive equilibrium, there can be
A. economic profits, but not losses. B. economic profits or losses. C. neither economic profits nor losses. D. no economic profits, but losses.