Rental Car Maintenance Why do rental cars require more maintenance in their first 50,000 miles than comparable cars driven by private owners?
This is a moral hazard issue. Drivers drive their own cars with more care than they do cars that they are not responsible for once the rental period is over.
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Rent controls encourage investment in housing because they bring stability to the market.
Answer the following statement true (T) or false (F)
The Law of Diminishing Marginal Utility suggests that
A. when you consume more, you are less happy. B. the more you consume, the less extra enjoyment you get out of each additional unit. C. when you consume more, society is less well off. D. when prices are higher, you buy more.
The United States became a net debtor because
A. it ran consistently large current account deficits. B. it provided much foreign aid to other countries. C. it lent a lot to people in foreign countries. D. it ran consistently large current account surpluses.
When a bank's loans are written off, then the bank's:
A. Ability to make more new loans increases B. Ability to make new loans is restricted C. Assets will grow while its liabilities stay the same D. Assets stay the same while its liabilities grow