In the early 2000s, lenders began issuing mortgage loans to people who would normally not be qualified to take out loans because they did not meet lending standards. Those borrowers are known as
A) alternative borrowers.
B) weak borrowers.
C) subprime borrowers.
D) credit risks.
C
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In the model of the money supply process, the depositor's role in influencing the money supply is represented by
A) the currency holdings. B) the currency holdings and excess reserve. C) the currency holdings and borrowed reserve. D) the market interest rate.
To sell one more unit of a good, a monopolist must
A) lower the price on the last unit only. B) lower the price on all units. C) raise the price only on the last unit sold. D) raise the prices on all goods.
Which of the following is not true of the terms of trade?
a. They are determined by supply and demand factors. b. They lie somewhere between the opportunity costs of the trading partners. c. GATT begins negotiations on the terms of trade. d. They depend on negotiations between trade partners. e. They often favor one partner more than the other.
Suppose Juliana owns a small business making handbags. Each month she makes 18 handbags, which she sells for $100 each. The materials used to make each handbag cost $50. In addition, Juliana uses a spare room in her house to make the handbags and store her supplies. If she were not using the spare room for her business, she would use it as a guest room, an option that Juliana would value at $250 per month. If Juliana weren't making handbags, she would work at Trader Joe's earning $800 per month. What is Juliana's economic profit each month?
A. $900 B. $650 C. ?$150 D. $750