What does it mean when economists say that home buyers are "underwater" on their mortgages?
A. Buyers owe more on their mortgage than the properties are worth.
B. Buyers are financially incapable of repaying their mortgages and bankruptcy is inevitable.
C. Buyers are purchasing homes on flood plains and are highly susceptible to financial losses.
D. Buyers are paying interest rates substantially higher than current market interest rates,
A. Buyers owe more on their mortgage than the properties are worth.
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The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?
A) Figure A B) Figure B C) Figure C D) Figure D
In the above figure, the opportunity cost of moving from producing 75 guitars and 25 ukuleles to producing 50 guitars and 50 ukuleles is
A) 25 ukuleles. B) 50 guitars. C) 100 guitars. D) 25 guitars.