A haircut (in finance) is ________
A) the payment of a block of funds as part of a refinancing arrangement
B) the percentage by which the value of collateral exceeds the value of the loan
C) the issue of equities rather than debt in acquiring access to money capital
D) the immediate end of lending to subprime borrowers
B
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When all other influences on firms' hiring plans remain the same, the
A) lower the real wage rate, the greater is the quantity of labor supplied B) higher the real wage rate, the greater is the quantity of labor demanded. C) lower the real wage rate, the smaller is the quantity of labor demanded. D) lower the real wage rate, the greater is the quantity of labor demanded. E) None of the above answers is correct because firms' hiring decisions depend on how profitable hiring a worker is, which depends on how much added profit the worker can create.
If banks face a problem in loan markets when bad credit risks are the ones most likely to seek bank loans, it is described as
A) moral hazard. B) moral suasion. C) adverse selection. D) fraud.
Compensating differences in wages:
A. compensate workers for differences in their human capital. B. are wage differences that compensate for differences in the desirability of jobs. C. describe the tendency for the wages of all occupations to adjust to the median level. D. do not exist if jobs have different nonmonetary characteristics.
Which of the following would cause a decrease in the supply of peanut butter?
A) a decrease in the price of jelly (assuming that peanut butter and jelly are complements) B) a decrease in the price of peanut butter C) an increase the price of peanuts D) an increase in the technology used to produce peanut butter