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"Exotic" mortgages became popular in part because they allow someone of:
A. means to get into a home they would easily have been able to afford.
B. modest means to get into a home they might otherwise not have been able to afford.
C. modest means to build more equity in their home than a traditional mortgage would allow.
D. modest means to build their credit score by proving they could make challenging payments.
Explain how much consumer surplus exists in this market. If a $2.00 excise tax is levied on this good what will happen to equilibrium price and quantity.
As internet banking spreads, velocity begins to increase at a rate of 3 percent per year. What will happen to the rate of inflation? How could the ECB offset the impact on inflation.
Assuming that land and labour are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners in Texas.
Explain how shortages/surpluses are eliminated in a free market system. You can use graphs and specific examples in your analysis. Graphs don’t count towards the word limit. Explain the difference between scarcity and shortage.
q. assume you have been hired as a managing consultant by a company to offer some advice that will help it make a
Explain at the current price, eight units are demanded each period. If the objective is to increase total revenue, should the price be increased or decreased.
How does the adverse selection problem arise in the credit-card market? How do credit-card companies reduce the adverse selection problem that they face? To what complaint does this give rise?
What is the consumer price index (CPI)? How is it measured? What are the pros and cons of using the CPI as a measure of the cost of living?
q. throughout history the most popular form of money has been gold.a. give three reasons why gold has been such a
If the product price is $105, at its optimal output will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all calculations.
q. a company has started a phone service that uses overseas doctors to provide emergency medical consultations.
Discuss these three time horizons in terms of the price elasticity of supply. Sketch a figure showing supply curves for each of the time horizons.
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