If the value of a home falls below the amount owed on the mortgage for that property, the house is said to be ________. A) underwater B) collateralized C) swamped D) in short sale ANSWER A
Date: September 10th, 2020
From 1995-2007, the Irish economy ________. A) suffered from severe unemployment, famine and labor migration B) witnessed a boom in the real economy, but suffered through a collapse in asset prices C) enjoyed one of the highest growth rates in the world D) suffered through a period of prolonged deflation ANSWER C
Date: September 10th, 2020
Market exchange is typically an exchange of goods for money, as opposed to goods for goods, because use of money solves the problem of A) the absence of a coincidence of wants. B) the absence of a double coincidence of wants. C) a coincidence of needs. D) tax evasion. ANSWER B
Date: September 10th, 2020
Limited commitment means A) one cannot credibly promise something. B) one saves only part of what is optimal. C) only some households are allowed to save. D) there is rationing on the credit market. ANSWER A
Date: September 10th, 2020
The fact that indifference curves are bowed in toward the origin A) is not true. B) follows from the fact that more is preferred to less. C) follows from the property that the consumer likes diversity in his or her consumption bundle. D) follows from the property that consumption and leisure are normal goods. […]
Date: September 10th, 2020
As wages and prices become more flexible ________. A) wages becomes less responsive to unemployment deviations from the natural rate B) it becomes easier to differentiate the short-run from the long-run Phillips curve C) inflation becomes more responsive to unemployment deviations from the natural rate D) all of the above E) none of the above […]
Date: September 10th, 2020
The quantity theory of money ________. A) is the product of classical economists B) links total income to a country’s supply of money C) is derived from the equation of exchange D) all of the above E) none of the above ANSWER D
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
An interest rate spread is A) the difference between long-term and short-term interest rates. B) the difference between nominal and real interest rates. C) the difference between lending and borrowing interest rates. D) the difference between public and commercial interest rates. ANSWER C
Date: September 10th, 2020
The marginal rate of substitution A) is minus the slope of the indifference curve. B) can be computed by measuring the curvature of the indifference curve. C) cannot be deduced from the properties of the indifference curve. D) can only be computed if we know the prices of all goods. ANSWER A
Date: September 10th, 2020
