Sammy is willing to lend Oscar $625 today so Oscar can purchase a new set of tires for his pickup truck. Oscar agrees to pay the loan back plus 5% interest in one year. What is the future value of this loan?

A price control is:

A) a market determined equilibrium price. B) a non-market price imposition. C) the price at which quantity demanded equals quantity supplied. D) the price that maximizes social surplus.

The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, what is the person's cost of risk?

A) $10,000 B) $20,000 C) $30,000 D) $40,000