Mo's current income is $100 more per month than his current consumption needs. He decides to use the $100 to reduce his credit card debt. As a result, his:
A. assets and his wealth will increase.
B. liabilities will decrease and his wealth will increase.
C. liabilities and his wealth will decrease.
D. assets will decrease and his wealth will increase.
Answer: B
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The demand curve is downward sloping because
A) the price must rise to induce firms to increase quantity supplied. B) a reduction in the price of a good causes individuals to increase their purchase of that good. C) an increase in the price will cause a leftward shift in the demand curve. D) all of the above.
Which statement about population growth is true?
a. Rapid population growth lacks economic benefits. b. The fastest population growth occurs in wealthy, developed countries. c. Rapid population growth does not have to impede economic growth. d. Population growth usually results in a decline in per capita output.
Approximately what percentage of the world's extinct species became extinct before humans appeared on earth?
A) 2 percent B) 10 percent C) 67 percent D) more than 99 percent
If an agent is risk averse and a principal is risk neutral, if the agent pays the principal a fixed fee
A) all risk is eliminated. B) the risk neutral person bears all the risk while the risk averse person bears none. C) the risk averse person bears all the risk while the risk neutral person bears none. D) the principal and agent share risk equally.