Suppose you buy a house for $250,000. One year later, the market price for the house has fallen to $200,000
What is the return on your investment in the house if you made a down payment of 10 percent and took out a mortgage loan for the other 90 percent?
The market price has fallen by $50,000, so with a 10 percent down payment, your return on investment is -$50,000 divided by the 10 percent down payment of $25,000. or -50,000/ $25,000 = -2, which means you lost 200 percent.
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In the specificfactors model, labor migration from Mexico to the United States will cause _________ in U.S. lowskilled wages and _________ in Mexican low skilled wages.
a. increases; decreases b. increases; increases c. decreases; decreases d. decreases; increases
Basic supply and demand analysis indicates that having firms rather than the government provide health insurance to workers
A) changes neither the composition of the compensation that firms pay nor its level. B) changes both the composition of the compensation that firms pay and its level. C) changes the composition of the compensation that firms pay, but does not change its level. D) does not change the composition of the compensation that firms pay, but does change its level.