The Fed's low short-term interest rate policy from 2002-2004, along with housing regulations promoting low down-payment loans to sub-prime borrowers, encouraged
a. conventional 30-year, fixed rate mortgages which have relatively high default and foreclosure rates.
b. conventional 30-year, fixed rate mortgages which have relatively low default and foreclosure rates.
c. adjustable rate mortgages which have relatively low default and foreclosure rates.
d. adjustable rate mortgages which have relatively high default and foreclosure rates.
D
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In the indifference curve-budget line model of labor supply, the slope of the indifference curves is used to measure
a. the wage rate. b. labor's marginal product. c. the worker's nonlabor income. d. the marginal value of leisure.
Suppose a market is initially perfectly competitive with many firms selling an identical product. Over time, however, suppose the merging of firms results in the market being served by only three or four firms selling this same product. As a result, we would expect
a. an increase in market output and an increase in the price of the product. b. an increase in market output and an decrease in the price of the product. c. a decrease in market output and an increase in the price of the product. d. a decrease in market output and a decrease in the price of the product.
A fund in which moneys are set aside either in preset amounts or on a variable basis is referred to as a
a. sinking fund b. serial bond c. common bond d. convertible bond e. mutual fund
One of the two criteria for a resource to be considered as a natural resource is that it must:
A) have been produced. B) be found in nature. C) be part of a factory or building. D) not be used to produce goods and services.