The interest rates on outstanding credit card balances are generally high because
A) the default rate on credit card loans is high and there are no assets backing these loans.
B) the banks "price gouge" consumers in this market.
C) there is little competition in this lending market.
D) the administrative costs associated with these loans are low.
A) the default rate on credit card loans is high and there are no assets backing these loans.
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A mugger steals $25 from John Doe. What can an economist conclude?
A) Nobody gained in the "exchange." B) Both parties gained in the "exchange." C) Only the mugger's wealth has increased. D) Nothing, because economists study strictly voluntary exchanges.
Which of the following is NOT a major concern of international economic theory?
A) protectionism B) the balance of payments C) exchange rate determination D) bilateral trade relations with China E) the international capital market
Profits earned by foreign firms or governments under a quota are called:
A. quota rents. B. quota revenue. C. trade costs. D. trade rents.
Which of the following is an argument in favor of outward-oriented strategy?
a. It leads to a fall in government deficit spending. b. It leads to a fall in domestic prices of imported goods. c. It helps the economy to grow more rapidly by encouraging exports. d. It leads to an increase in the price of exported goods in the foreign markets. e. It leads to an increase in the supply of goods and services in the domestic market.