Which of the following would you expect to see for borrowers with a high risk of default, compared to borrowers with a low risk of default?
A. A supply curve that is further to the right
B. A surplus of loans
C. A demand curve that is further to the left
D. A higher interest rate
Answer: D
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Mutual interdependence means that each firm in an oligopoly
A. depends on the other firms for its markets. B. considers the reactions of its rivals when it determines its pricing policy. C. faces a perfectly inelastic demand for its product. D. depends on the other firms for its inputs.
Suppose the U.S. government encouraged new medical school graduates to take over existing practices from doctors wishing to retire by paying both the new and retiring doctors $100,000. These doctors would be exemplifying the economic idea that
A) people are rational. B) people respond to economic incentives. C) optimal decisions are made at the margin. D) equity is more important than efficiency.
The 1974 federal legislation that exempted employers from certain state laws governing health insurance was
a. COBRA b. ERISA c. CON d. HIPAA e. SCHIP
Identify an example of a flow variable
a. The volume of the federal government's debt b. The population of a country in a particular year c. The total amount of an individual's wealth d. The amount of sales tax collected per year e. The total amount of unemployment in an economy