Banks earn profits from off-balance sheet loan sales
A) by foreclosing on delinquent accounts.
B) by selling the loans at discounted prices.
C) by selling existing loans for more than the original loan amount.
D) by calling-in loans before the maturity date.
C
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The government imposes a sales tax on hot dogs. The tax would be paid entirely by the hot dog buyers if the
A) supply is perfectly elastic. B) supply is perfectly inelastic. C) demand is perfectly elastic. D) None of the above answers is correct.
If two workers can produce 22 units of output, and the addition of a third worker increases output to 30 units, the marginal product of the third worker is:
a. 8 units. b. 10 units. c. 22 units. d. 30 units.
Professional sports teams will sometimes seek public subsidies for stadium financing projects that produce large benefits for a relatively small number of fans and impose small costs on a relatively large number of people. Sometimes these efforts to secure public funding are successful even though the decision is not efficient. This is an example of
A. pork-barrel politics. B. market failure. C. the special-interest effect. D. log-rolling.
Scientists have developed a bacterium they believe will lower the freezing point of agricultural products. This innovation could save farmers $1 billion a year in crops now lost to frost damage. If this technology becomes widely used, what will happen to the equilibrium price and quantity in, for example, the potato market?
A. price will increase, quantity will increase B. price will decrease, quantity will decrease C. price will increase, quantity will decrease D. price will decrease, quantity will increase E. The change in equilibrium price and quantity is indeterminate.