If the market value of what it has lent is less than the market value of what it has borrowed, a financial institution's net worth is ________ and it is ________
A) negative; illiquid and insolvent
B) positive; illiquid and insolvent
C) negative; insolvent but not necessarily illiquid
D) positive; insolvent but not necessarily illiquid
E) negative; illiquid but not necessarily insolvent
C
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There are five firms in the cresset industry. The market shares of the five firms are 60 percent, 15 percent, 15 percent, 6 percent, and 4 percent. The Herfindahl index is
a. 96 b. 4,086 c. 10,000 d. 4,102 e. 4,100
The concept of economic rent would be more applicable to the earnings of
a. a secretary. b. Peyton Manning. c. a doctor or a lawyer. d. only a landowner.
Which of the following is a positive statement?
A. Because many adults cannot afford to go to college, tax credits for tuition should be introduced. B. When a country imports more than it exports, its balance of trade is negative. C. The price of drugs in the United States is too high. D. It only makes sense to offer financial aid for students who cannot pay some of their tuition. E.The President of the United States ought to be elected by a direct vote of the American people rather than the Electoral College
International trade
A. Redistributes income from import-competing industries to export industries. B. Benefits the domestic industries that compete with the imported products. C. Reduces the level of income for export industries. D. Causes prices of products to rise because of the transportation costs.