Applying neoclassical theory to the housing market, a higher marginal product of (housing) capital may be caused by ________
A) higher expected household income
B) the inability to buy as much housing at a higher price
C) an expected increase in the relative price of housing
D) a decrease in the cost of building new houses
A
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In monopolistic competition, each firm supplies a ________ part of the total market output and its actions ________ the actions of the other firms
A) small; do not directly affect B) small; directly affect C) large; do not directly affect D) large; directly affect
Explain why insurance companies usually do not offer earthquake insurance
What will be an ideal response?
Regular interest payments made to bondholders are called ________ payments.
A. reserve B. coupon C. dividend D. diversification
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.