Assume that a particular state has decided to outlaw the sharing of individuals' credit histories as an illegal invasion of privacy. As a result of this action we would expect the

A) cost of borrowing money to rise.
B) number of loans to unworthy credit risks to rise.
C) problems of asymmetric information to become more severe.
D) all of the above
E) none of the above


D

Economics

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Suppose the elasticity of demand for Mexican food is 3.00 and the elasticity of supply is 1.20. If the government imposes a sales tax on Mexican food, which of the following occurs?

i. Less Mexican food is purchased by buyers. ii. Less Mexican food is produced by sellers. iii. The government receives the excess burden as revenue. iv. Both the consumer surplus and the producer surplus decrease. A) i and ii B) iii only C) i, ii, and iv D) iv only E) i, ii, iii, and iv

Economics

Consider estimating the effect of the beer tax on the fatality rate, using time and state fixed effect for the Northeast Region of the United States (Maine, Vermont, New Hampshire, Massachusetts, Connecticut and Rhode Island) for the period 1991-2001

If Beer Tax was the only explanatory variable, how many coefficients would you need to estimate, excluding the constant? A) 18 B) 17 C) 7 D) 11

Economics

An indifference curve is a line showing

a. combinations of goods that can be produced if all resources are fully employed. b. all combinations of two commodities that are equally desirable to the consumer. c. all combinations of goods over which the consumer has no choice. d. how decisions are made in a nonmarket economy.

Economics

What is the present value of $10,000 8 years from now if the interest rate is 8%?

What will be an ideal response?

Economics